Foreign media report that the Filecoin token, FIL, has seen an expanded decline over the past week, with its price falling below a key support level it had maintained for nearly two months. This commentary suggests that this breakdown is not merely a failed rebound, but signifies the disruption of the previous price structure, with short-term market control reverting to sellers.
Two-month support zone breached
Between late March and May, the $0.80–$0.83 range repeatedly absorbed selling pressure and propelled FIL to as high as around $1.35. This level has now been broken, with FIL down approximately 47% from its May high and about 11% below the original demand zone.
The article suggests that after this range was breached, market behavior has changed. Buyers who established positions within the range are now carrying unrealized losses, and as a result, these positions are more likely to sell off if the price rebounds. Consequently, the $0.80 to $0.83 range is no longer a support level below, but has instead become a new resistance zone above.
The momentum indicator remains bearish.
From a technical indicators perspective, selling momentum has not yet shown clear signs of easing. The Relative Strength Index (RSI) stands at 27.63; although it has entered oversold territory, the article suggests this level is insufficient to indicate that a solid market bottom has formed.
The MACD remains firmly in negative territory, indicating that downward momentum has not yet stabilized. According to the article, a short-term rebound in FIL is possible, but if it fails to reclaim $0.83, the overall trend is still likely to continue lower.
Watch the support zone between $0.65 and $0.67.
The article considers the area around $0.65 to $0.67 as the next key support zone. If selling pressure continues, FIL may test this level further.
However, the article also notes that a short-term rebound is not entirely impossible. Nevertheless, based on the current structure, any rebound is more likely to first encounter selling pressure converted from the previous support zone; whether the market can reverse its weakness still depends on whether the price can reclaim above $0.83.