- Filecoin price dropped 7% to below $1.40 on Thursday, placing bulls under pressure.
- The decline occurred amid a broader sell-off in AI-related tokens.
- Market outlook and technical indicators suggest Filecoin could fall toward $1.20 and potentially $1.00.
Filecoin (FIL) has extended its recent losses, sliding more than 7% in the past 24 hours to reach a low of $1.37. Sellers pushed the token below the key psychological support level at $1.40, increasing the risk of further downside.
Weakness across broader markets, including equities, contributed to bearish sentiment and raised the possibility of continued declines for FIL.
FIL falls as AI tokens retreat
The latest sell-off pulled Filecoin back to price levels not seen since October, with declines evident across multiple timeframes. Still, FIL remains up roughly 117% from a low near $0.63 on October 10.
Over the past seven days, Filecoin has lost about 12% of its value.
This downturn coincides with renewed weakness in the crypto market at large. Despite expectations tied to the US Federal Reserve’s December meeting and potential rate cuts, cryptocurrencies did not stage a notable rally.
Bitcoin dipped below $90,000 before recovering, pressuring the wider altcoin market and leaving BTC hovering precariously above that level.
Filecoin’s decline tracked sharp losses among several leading artificial intelligence-focused tokens. Projects such as Bittensor (TAO), NEAR Protocol and Render (RENDER) surrendered recent gains and showed losses over the past 24 hours.
AI tokens faced fresh selling pressure in step with weakness in traditional markets. In premarket trading, AI-related equities including Oracle and Nvidia fell as broader technology stocks came under pressure ahead of Thursday’s open.
Near-term outlook for Filecoin price
Following a breakdown of the $1.60 area in November, the $1.50–$1.45 zone had provided key support for Filecoin. With the price now decisively below $1.50 and having breached the $1.40 buffer, downside risk has increased for bulls.
If FIL breaks below $1.30, bearish momentum would likely intensify and make lower targets more probable.
Technical indicators on the daily chart point to dominant bearish momentum. The Relative Strength Index (RSI) has fallen to around 36, leaving room for additional selling pressure.
The Moving Average Convergence Divergence (MACD) has signaled weakness following a bearish crossover in mid-November. If bears maintain control, support levels around $1.20 and $1.00 will likely come into focus.
That said, bulls still retain a conditional advantage if they can mount a recovery. A decisive breakout above the $1.30 zone could pave the way for a retest of higher levels.
Historically, FIL has shown capacity for rapid rebounds: in November the token surged more than 100% in two days, rallying from roughly $1.32 to $3.92. To cement a sustainable reversal now, buyers will need to overcome resistance near the 50-day exponential moving average, which sits close to $1.73.