- Filecoin price dropped 7% to below $1.40 on Thursday, putting bulls under pressure.
- The decline comes amid a broader pullback in AI-related tokens.
- Market outlook and the technical chart suggest Filecoin could fall to $1.20 and $1.00.
Filecoin extended its recent losses, sliding more than 7% over the past 24 hours to lows around $1.37.
The token of the decentralized storage network faced further downside after sellers pushed it below the key psychological support at $1.40.
Wider market weakness, including pressure across equity markets, left bulls vulnerable to continued downward momentum.
Pullback deepens as AI tokens lose ground
The latest decline pushed Filecoin back to price levels last seen in October, with losses visible across all timeframes. Still, the token remains up roughly 117% since bottoming near $0.63 on October 10.
Filecoin has fallen about 12% over the past seven days.
As noted, the drop coincided with renewed weakness across the crypto market. Despite expectations around a December Federal Reserve meeting and potential rate cuts, cryptocurrencies failed to mount a sustained recovery.
Bitcoin briefly dipped below $90,000 before recovering, dragging the broader altcoin market down with it. BTC remains precariously close to the $90,000 level.
Filecoin’s slide mirrored sharp losses among leading AI-focused tokens. Projects such as Bittensor (TAO), NEAR Protocol and Render (RENDER) have all surrendered gains and remained in the red over the last 24 hours.
It’s notable that AI-related tokens experienced another wave of selling in tandem with weakness in traditional markets.
In pre-market trading, AI-related stocks including Oracle and Nvidia slipped as the wider tech sector came under pressure ahead of Thursday’s open.
What’s next for Filecoin price?
The $1.50–$1.45 area had acted as a key support zone for Filecoin after bears took out the $1.60 level in November.
With price now clearly below $1.50 and the $1.40 buffer breached, bulls face the risk of further downside moves.
In the near term, the bearish outlook would intensify if price breaks down beneath $1.30.
Bearish momentum remains dominant on the daily chart.
The Relative Strength Index (RSI) has fallen to 36, indicating room for additional selling pressure.
At the same time, the Moving Average Convergence Divergence (MACD) indicator has signaled weakness since a bearish crossover in mid-November. If bears maintain control, the $1.20 and $1.00 levels come into view.
Despite the threat of further decline, bulls still retain a slim advantage. A decisive breakout above the $1.30 zone could open the door for a retest of higher levels.
In November, FIL surged more than 100% in two days, climbing from lows around $1.32 to highs of $3.92.
Bulls will need to reclaim and hold the 50-day exponential moving average, near $1.73, if they aim to build momentum for a sustainable trend reversal.