FIL struggles to hold key support after failing to reclaim the $2.40 resistance zone
Filecoin (FIL) is under renewed selling pressure, falling by nearly 4% in the past 24 hours as traders react to a technical rejection near the $2.40 resistance zone. The move extends a week-long decline that has pushed the token below multiple short-term support levels, signaling continued weakness in market momentum.
On the daily FIL/USDT chart, the token recently failed to break through the gray and red resistance zones between $2.40 and $2.80, which have acted as strong supply areas since mid-August. The rejection came on rising trading volume, suggesting active distribution by short-term holders.
Beneath current levels, the green support band between $2.00 and $2.20 remains the key area to watch. A decisive breakdown below this region could expose further downside toward $1.85, while a rebound could help FIL stabilize and attempt another retest of $2.40 in the coming sessions.
“Filecoin has struggled to maintain higher lows since early August,” said one of BITX market analyst. “The token’s inability to break above $2.80 shows that sellers are still in control, despite occasional relief rallies.”
The broader crypto market has also turned cautious following Bitcoin’s recent dip below $122,000, with Ethereum (ETH) and Solana (SOL) showing modest pullbacks. Traders are closely watching whether Bitcoin can hold above its key psychological support, as sustained weakness could weigh further on altcoins like Filecoin.
“If Bitcoin remains volatile, capital will continue rotating out of smaller-cap assets,” According to BITX . “FIL needs a confirmed close above $2.50 to regain technical strength.”
Despite the short-term pressure, some analysts note that Filecoin’s long-term fundamentals — particularly its decentralized storage utility — remain intact. However, technical sentiment currently favors caution, with momentum indicators showing weakness and the trendline pointing downward.
In the short term, consolidation within the $2.00–$2.40 range appears likely until a stronger catalyst emerges to shift sentiment.
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.