Technical indicators show renewed weakness as FIL struggles to reclaim the $2.40 zone amid bearish momentum.
Filecoin (FIL) faced renewed selling pressure on Thursday, falling nearly 7% intraday as traders reacted to resistance rejections near the $2.40–$2.50 level. The asset currently trades around $2.36, showing signs of consolidation after failing to sustain short-term upside momentum.
The 4-hour chart shows that FIL has been locked in a sideways channel since early September, following a sharp recovery from the $2.10 support zone — a level highlighted in green on the chart as a strong accumulation area. Technical data suggests that buyers have defended this range multiple times, preventing a deeper correction below $2.20.
However, upside momentum has been capped by two consecutive resistance zones, between $2.65–$2.75 and $2.85–$2.95, shown in the red and pink regions. Analysts note that repeated failures to close above these ranges may signal exhaustion among short-term bulls.
“Filecoin’s momentum remains fragile below $2.50,” said BITX technical analyst. “Until we see a decisive breakout above $2.70, the broader trend continues to favor sellers.”
The broader market sentiment remains cautious as Bitcoin hovers near the $122,000 mark, adding pressure across altcoins. Historically, FIL tends to mirror broader market trends, amplifying moves during both rallies and corrections.
From a technical perspective, the $2.20–$2.10 zone is a critical support range, while a break below it could expose the asset to further losses toward $1.90. Conversely, a strong close above $2.70 could pave the way for a retest of the psychological $3.00 barrier.
“The consolidation pattern suggests indecision, but volume and structure indicate accumulation in the lower range,” According to BITX market observers. “If the broader crypto market stabilizes, FIL could be poised for a short-term recovery.”
For now, traders are watching whether Filecoin can hold above the green support area, as failure to do so might trigger another round of selling before potential buyers re-enter the market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.