- Filecoin price fell 7% to below $1.40 on Thursday, putting bulls under pressure.
- This decline comes amid a broader pullback in AI-focused tokens.
- Market outlook and technical charts suggest Filecoin could drop to $1.20 and $1.00.
Filecoin extended its recent losses, plunging more than 7% over the past 24 hours to lows around $1.37.
The token for the decentralized storage network faced the risk of further declines after sellers pushed past the key psychological support at $1.40.
Weakness across the broader market, including major cryptocurrencies, increased the likelihood of continued downside for bulls.
Pullback deepens as AI tokens suffer losses
The latest down leg for Filecoin pushed prices back to levels last seen in October, with declines evident across all timeframes. Still, the token remains up roughly 117% since its October 10 low near $0.63.
Filecoin has declined about 12% over the past seven days.
This drop coincides with renewed weakness across the crypto market. Despite expectations around the U.S. Federal Reserve’s December meeting and potential rate cuts, cryptocurrencies have not staged a notable rebound.
Bitcoin briefly slipped below $90,000 before recovering, dragging the wider altcoin market lower. BTC remains cautiously positioned above the $90,000 area.
Filecoin’s slide also mirrors sharp losses among major AI-focused tokens. Bittensor (TAO), NEAR Protocol and Render (RENDER) all gave back gains and were trading lower over the last 24 hours.
Notably, AI-linked tokens fell again amid similar pressures in traditional markets.
In pre-market trading, AI-related stocks including Oracle and Nvidia pulled back, placing tech names under pressure ahead of Thursday’s open.
What’s next for Filecoin price?
The $1.50 to $1.45 band had been key support for Filecoin after bears broke 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.
Near term, the bearish case would strengthen if price slips toward $1.30.
Bearish momentum remains dominant on the daily chart.
The Relative Strength Index (RSI) has fallen to 36, leaving room for additional selling pressure.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has signaled weakness since a bearish crossover in mid-November. If bears seize control, support levels at $1.20 and $1.00 could come into play.
Despite the threat of further declines, bulls retain a modest advantage. A decisive break above the $1.30 area could open the door for a renewed test of higher levels.
In November, Filecoin surged more than 100% in two days, climbing from lows near $1.32 to highs around $3.92.
For bulls to mount a convincing trend reversal, they will need to overcome the 50-day exponential moving average, which sits near $1.73.