faced significant selling pressure as the token broke through key support levels at $2.39, $2.37, and $2.36 during high trading volumes on Tuesday morning in the U.S. market, per CoinDesk Research’s technical analysis model.
The analysis indicated that the decentralized storage network’s cryptocurrency recorded its most significant decline in the last trading hour, with panic selling evident as volume surged to 530,000 within a single minute.
The token violated critical support levels amid institutional sell-offs and increased trading volumes, according to the model.
This past week included essential protocol updates, new artificial intelligence projects, and ongoing preparations for FIL Dev Summit 7, as mentioned in a post on X by the network.
In recent trades, Filecoin was down 4.4%, hovering around $2.31.
The broader cryptocurrency market also saw declines, with the CoinDesk 20 index down 3.4%.
Technical Analysis:
- Resistance levels at $2.41-$2.42 held strong during early trading sessions before the subsequent decline.
- Key support thresholds broken at $2.39, $2.37, and $2.36 indicate technical weakness.
- Volume rose to 5.67 million during the sell-off, confirming institutional liquidation trends.
- A single-minute volume spike of 530,000 indicates panic selling and capitulation.
Disclaimer: Sections of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure precision and compliance with our standards. For additional details, see CoinDesk’s complete AI Policy.
