Filecoin Drops as Institutions Battle Over Key $1.28 Support Level

Filecoin (FIL) retreated 2.2% over the past 24 hours, sliding from $1.32 to $1.29 as technical sellers took control. The decentralized storage token is now caught in a tug-of-war, with institutions reportedly selling at the $1.33 resistance while others accumulate on dips at the critical $1.28 support.

The real story lies in the volume, according to CoinDesk Research’s technical analysis model. Trading activity exploded to 7.59 million tokens yesterday evening—a surge of 180% above the 24-hour average. The model indicated this spike coincided with selling at the $1.33 resistance level, marking a clear case of institutional distribution.

However, the swift, V-shaped recovery from the $1.28 support level demonstrates that institutional buyers remain active, showing a strong appetite for accumulation despite the prevailing bearish channel structure. With no major fundamental catalysts, these technical levels have become the primary battleground for FIL.

The weakness in FIL comes amid a broader decline in crypto markets, with the CoinDesk 20 index falling 3.1% at publication time.

For traders, the path forward hinges on the $1.28 level. A definitive break below this key support could open the path to the $1.26 extension. Conversely, if buyers successfully defend this line, an immediate upside target sits at the $1.31-$1.32 range, offering a potential gain of 3.5%. The current risk/reward ratio appears to favor long positions with tight stops set just below the $1.2800 mark.