Filecoin dropped by 4.2% to $1.28 on Tuesday amidst considerable volatility, as traders prompted sharp reversals during a more extensive market decline, according to CoinDesk Research’s technical analysis model.
The analysis indicated that the decentralized storage token established a bearish pricing trend, with a $0.08 range reflecting 6.3% volatility.
Trading volume was 12.75% higher than the seven-day average, per the model. The peak reached 11.7 million tokens, which is 85% above the 24-hour average of 2.81 million.
This surge confirmed the token’s breakdown below the psychological support level of $1.30, the model reported.
The larger crypto market also saw declines. The CoinDesk 20 index was down 3.7% at the time of publishing.
Technical Analysis:
- Primary support is positioned at $1.278, with resistance limiting upward movement near $1.285, resulting in a narrow $0.007 trading range.
- The 185% volume increase during the breakdown at $1.30 validated institutional involvement, while normalized activity in late sessions suggests a consolidation phase, according to the model.
- Classic support-resistance dynamics emerged, with swift capitulation followed by a quick recovery bounce indicating buyer interest at reduced levels.
- Near-term trading ranges between $1.278 and $1.285, with the broader 24-hour bearish trend remaining until the psychological level of $1.30 is reclaimed.
Disclaimer: Segments of this article were generated with the help of AI tools and reviewed by our editorial team to ensure precision and compliance with our standards. For more details, refer to CoinDesk’s full AI Policy.
