Filecoin Tumbles 6% as Institutional Selling Overwhelms Key Support Levels

Filecoin (FIL) faced a sharp 5.8% decline over the past 24 hours, plummeting from $2.569 to $2.406 amid heavy selling pressure, with trading volume spiking to 7 million FIL during peak liquidation hours . The breakdown of the critical $2.52 support level—previously stable during early trading—triggered accelerated selling, pushing FIL to test the $2.41–$2.42 consolidation zone.

Key Technical Developments:

Volume Surge: A concentrated sell-off between 22:00–00:00 UTC accounted for 40% of the day’s total volume, suggesting institutional distribution .
Failed Recovery Attempts: Brief rallies to $2.427 were met with immediate resistance at $2.420, forming rejection wicks that indicated persistent bearish sentiment .
Market Correlation: The drop mirrored broader crypto weakness, with the CoinDesk 20 Index down 2% .

Why This Matters:
The loss of $2.52 support—now flipped to resistance—signals potential further downside unless buyers reclaim $2.45. Analysts note that the V-shaped recovery pattern lacks conviction due to low follow-through volume .

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