- Filecoin price dropped 7% on Thursday to below $1.40, putting bulls under pressure.
- The decline comes amid a broader pullback in AI-focused tokens.
- Market outlook and technical charts suggest Filecoin could fall to $1.20 or even $1.00.
The Filecoin price extended its recent losses, sliding more than 7% in the last 24 hours to reach lows near $1.37.
The token for the decentralized storage network risked further losses as sellers pushed past the key psychological support at $1.40.
Wider market weakness, including pressure in equities, left bulls facing potential further downside.
FIL slips as AI tokens retreat
Filecoin’s most recent decline brought prices back to levels last seen in October, with drops across multiple timeframes. Still, the token remains up roughly 117% from its low of about $0.63 on October 10.
FIL has fallen about 12% over the past seven days.
The sell-off coincides with renewed weakness across the crypto market. Despite the U.S. Federal Reserve’s December meeting and a rate cut, cryptocurrencies have failed to mount a sustained recovery.
Bitcoin briefly fell below $90,000 before recovering, dragging the broader altcoin market lower. BTC remains precariously close to the $90,000 mark.
Filecoin’s drop also mirrored significant losses among leading AI-focused tokens. Bittensor (TAO), NEAR Protocol and Render (RENDER) all gave back recent gains in the last 24 hours and remain in the red.
Notably, AI tokens are experiencing a fresh wave of selling, reflecting similar pressures in traditional markets.
Pre-market declines in AI-related stocks such as Oracle and Nvidia added to the negative tone, as the broader tech sector came under pressure before Thursday’s open.
What’s next for the Filecoin price?
The $1.50–$1.45 zone had acted as a meaningful support range for Filecoin after bears pushed the price down through $1.60 in November.
With the 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 strengthen if the price breaks below $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.
Meanwhile, the Moving Average Convergence Divergence (MACD) shows weakness after a bearish crossover in mid-November. Continued bearish control brings the $1.20 and $1.00 levels into focus.
Despite the downside risk, bulls still retain a modest edge. A decisive breakout 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, jumping from lows near $1.32 to highs around $3.92.
Bulls will need to contend with the 50-day exponential moving average, near $1.73, if they hope to build momentum for a trend reversal.