Filecoin broke critical technical support on Monday, with the token falling 5.1% to $1.24 as a massive surge in volume signaled institutional selling pressure, according to CoinDesk Research’s technical analysis model.
The broader crypto market also fell sharply, with bitcoin down 3.5% and the CoinDesk 20 down 4.4%.
Trading volume exploded to 11.74 million tokens, nearly 400% above normal levels, as bears overwhelmed buyers at the $1.25 support zone, according to the model.
The model showed that selling accelerated in recent hours, with three consecutive lows confirming the collapse of the technical structure.
The breakout opens the door for deeper losses towards $1.23, with resistance now cemented at former support $1.25.
Technical analysis:
- Primary resistance cemented at $1.35 following failed recovery attempts
- Critical Support Violation Confirmed at $1.245
- Next major demand area targets $1.23-$1.235 range based on prior structure
- Failure of ascending trend support opens door to deeper retracement levels
- An exceptional increase in volume of 380% above average confirms the validity of the distribution
- High volume distribution suggests institutional participation rather than retail
- Key resistance for any relief rally: old support level $1.25
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial team for accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
