Filecoin broke through 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 recording a 3.5% drop and CoinDesk 20 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 selling accelerating in recent hours, with three consecutive lower lows confirming the collapse of the technical structure.
The breakdown opens the door to deeper losses towards $1.23, with resistance now cemented at $1.25 previous support.
Technical analysis:
- Primary resistance cemented at $1.35 after failed recovery attempts
- Critical Support Break Confirmed at $1,245
- Next major demand zone targets $1.23-1.235 range based on previous structure
- Rising trend support failures open the door to deeper retracement levels
- Extraordinary volume increase of 380% above average confirms the collapse validity
- Breakdown of large quantities suggests institutional participation rather than retail sales
- Key resistance for any relief rally: $1.25 previous support level
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
