Filecoin (FIL) fell sharply on Tuesday, sliding 4.2% to trade near $1.28, as increased volatility and a broader cryptocurrency market sell-off triggered rapid intraday reversals. The decentralized storage token hovered around $1.2685 at the time of analysis, according to CoinDesk Research’s technical analysis model.
Filecoin Price Analysis Signals Bearish Momentum
Technical indicators suggest that Filecoin is entering a short-term bearish phase. The model identified a developing downtrend, supported by an intraday trading range of $0.08 — representing approximately 6.3% volatility. This heightened price movement reflects growing uncertainty among traders and reinforces the downside pressure on FIL.
Trading activity also picked up significantly during the session. Volume rose 12.75% above the seven-day average, with peak activity reaching 11.7 million FIL. This surge marked an increase of nearly 85% compared with the 24-hour average volume of 2.81 million tokens, signaling strong participation during the sell-off.
Broader Crypto Market Weakness Adds Pressure
The spike in trading volume coincided with Filecoin breaking below the key psychological support level of $1.30. According to the model, this breakdown confirms a short-term bearish shift and suggests that buyers failed to defend the level amid rising sell pressure.
Filecoin’s decline was not an isolated event. The broader cryptocurrency market was also under stress, with the CoinDesk 20 index down approximately 3.7% at the time of publication. This wider market weakness amplified losses across multiple digital assets, adding further downside risk for FIL in the near term.
Technical Analysis Disclaimer: Portions of this content were generated with the assistance of AI tools and reviewed by an editorial team for accuracy and compliance with established editorial standards.
