By  Will Canny

What to know:

• FIL dropped over 10% as crypto market markets plummeted.

• Volume surged 33% above weekly average, suggesting heightened selling pressure.

Filecoin FIL dropped more than 10% to $1.46 during in the past 24 hours, underperforming the broader cryptocurrency market, which was itself heading south.

The token slid to $1.46 from $1.62, establishing a $0.16 range with 11% intraday volatility, according to CoinDesk Research's technical analysis model.

The model showed that volume surged 32.7% above the seven-day moving average, signaling concentrated selling pressure.

Peak liquidation hit at midnight UTC, with 20 million volume, more than four times the 24-hour simple moving average, according to the model. A technical breakdown accelerated through $1.58 support as resistance formed near $1.47.

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The selling established strong momentum through consecutive lower highs from the $1.6385 peak. Capitulation occurred around $1.46 following the high-volume breakdown event. Current price action suggests potential stabilization after exhausted selling pressure, the model said.

The broader market gauge, the CoinDesk 20 index, fell 7%.

Technical Analysis:

• Strong resistance formed near $1.47 after breakdown from $1.58 support

• Key resistance at prior support level of $1.58 now critical for recovery

• 24-hour volume surged 32.7% above 7-day moving average

• Peak selling volume of 19.97M at breakdown point (318% above SMA)

• Final hour showed exhaustion with zero-volume consolidation

• Potential stabilization forming around $1.46 support zone

• Immediate resistance at $1.47 must hold for further downside

• Recovery requires reclaim of $1.58 broken support level

• Downside risk toward $1.40 if current support fails

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.