Filecoin (FIL) fell sharply on Tuesday, succumbing to heavy selling pressure that pushed the token through multiple support levels during the U.S. trading session, according to CoinDesk Research’s technical analysis.
The cryptocurrency broke through key supports at $2.39, $2.37, and $2.36, with the steepest decline occurring in the final trading hour. Panic selling was evident as single-minute volume spiked to 530,000 FIL, highlighting elevated market stress.
The decline is attributed to institutional liquidations and high-volume selloffs, CoinDesk noted. FIL traded around $2.31, down 4.4%, while the broader crypto market, measured by the CoinDesk 20 index, fell 3.4%.
This pullback comes despite recent network developments, including protocol upgrades, AI-focused initiatives, and preparations for FIL Dev Summit 7, according to updates on X.
Technical Highlights:
- Early-session resistance at $2.41–$2.42 remained firm before breaking down.
- Breach of supports at $2.39, $2.37, and $2.36 signals technical weakness.
- Total selloff volume surged to 5.67 million FIL, consistent with institutional liquidation patterns.
- Single-minute peak of 530,000 FIL indicates panic selling and potential capitulation.
Filecoin’s price action underscores short-term vulnerability, as institutional selling dominates amid broader market weakness.
