Filecoin has surpassed significant technical support on Monday, experiencing a 5.1% decline to $1.24 as a substantial spike in trading volume indicated institutional selling pressure, as per CoinDesk Research’s technical analysis model.
The overall cryptocurrency market witnessed a notable decrease as well, with Bitcoin dropping by 3.5% and the CoinDesk 20 declining by 4.4%.
Trading volume skyrocketed to 11.74 million tokens, nearly 400% higher than usual, as sellers outnumbered buyers around the $1.25 support level, according to the model.
The analysis indicated that selling intensified in recent hours, with three successive lower lows validating the collapse of the technical structure.
This breakdown paves the way for potential further losses towards $1.23, with resistance firmly established at the previous support level of $1.25.
Technical Analysis:
- Main resistance is set at $1.35 following unsuccessful recovery attempts
- Crucial support breach confirmed at $1.245
- Next significant demand area targets the $1.23-1.235 range based on historical patterns
- Failure of ascending trend support opens the possibility for deeper retracement levels
- Remarkable volume increase of 380% above the average confirms the breakdown’s validity
- High-volume breakdown suggests institutional involvement instead of retail selling
- Key resistance for any rebound: $1.25 former support level
Disclaimer: Portions of this article were created with the help of AI tools and reviewed by our editorial team to ensure precision and compliance with our standards. For additional details, refer to CoinDesk’s complete AI Policy.
