Filecoin (FIL) faces renewed bearish pressure after failing to hold above $1.50, with traders eyeing critical support levels near $1.30.
Filecoin (FIL) extended its recent downtrend, sliding 4% in the past 24 hours as selling pressure intensified across the altcoin market. The decentralized storage token has now dropped toward a multi-month low of $1.44, triggering concerns among traders about a possible retest of its long-term support zone.
Technical analysis shows that FIL has broken below the short-term consolidation range, confirming a bearish continuation after weeks of sideways movement. The chart illustrates a clear rejection from the $2.20–$2.50 resistance zone (highlighted in red), followed by a swift decline back into lower territory.
“The recent breakdown below $1.60 signals that buyers are losing control,” According to BITX technical analysts. “If FIL fails to recover quickly, the next support lies around the $1.30–$1.35 area.”
The green zone on the chart represents a historical demand area where Filecoin previously found strong buying interest during the summer. Market participants are closely watching whether this level will again act as a cushion or give way to deeper losses.
Trading volume has surged slightly alongside the decline, suggesting increased market participation as traders reposition amid growing uncertainty. The pattern mirrors previous cycles when FIL tested similar price structures before rebounding, though momentum indicators currently lean bearish.
“We could be approaching a potential exhaustion point for sellers,” said BITX market observer. “The $1.30 level could provide temporary stability, but any bounce will need confirmation above $1.70 to regain bullish momentum.”
Despite short-term weakness, Filecoin’s underlying fundamentals — particularly its on-chain storage demand and ecosystem development — remain intact. However, the market continues to prioritize technical levels over long-term narratives in the current trading climate.
With Filecoin now hovering near crucial technical support, traders are watching for signs of stabilization. A sustained hold above $1.30 could spark a relief bounce, while failure to maintain this range might open the door to a deeper correction. For now, market sentiment remains cautious, with technicals suggesting that FIL must reclaim key resistance levels before any recovery trend can begin.
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.