Filecoin FIL Price Drops 4% Amid Heavy Selling Pressure and Support Breakdown

Filecoin (FIL) faced significant selling pressure as the cryptocurrency broke through multiple critical support levels at $2.39, $2.37, and $2.36 during Tuesday's U.S. trading session, according to CoinDesk Research's technical analysis. Trading volumes surged dramatically, with the model revealing the most severe price contraction occurring in the final trading hour. Panic selling became evident when volume spiked to 530,000 FIL within a single minute. The technical breakdown occurred amid institutional liquidation and high-volume selloff activity. Despite recent positive developments including core protocol updates, new AI initiatives, and preparations for the upcoming FIL Dev Summit 7 announced on X, the token continued to face downward pressure. At recent trading, Filecoin was down 4.4% to approximately $2.31, underperforming the broader crypto market where the CoinDesk 20 index declined 3.4%. Technical Analysis Highlights: - Resistance levels between $2.41-$2.42 held firm during early sessions before the breakdown - Multiple support thresholds at $2.39, $2.37, and $2.36 were breached, indicating technical weakness - Volume surge to 5.67 million FIL during selloff confirms institutional liquidation patterns - Single-minute volume peak of 530,000 suggests panic selling and market capitulation