The decentralized storage token, Filecoin, faces intensifying selling pressure, with volume spikes confirming a broader risk-off move across DePIN assets.
Filecoin (FIL) extended its recent downturn on Thursday, sliding 7.3% over the past 24 hours and losing the critical $1.43 support zone. The token moved from $1.48 to $1.38 during the session, as decentralized physical infrastructure networks (DePIN) led a market-wide pullback. The drop places FIL under new technical stress at a moment when sentiment is weakening across the digital asset sector.
The decline aligns with a clear pattern of lower highs since the December 10 peak at $1.55, a structure that had already signaled sellers were taking control. Trading activity surged to 10.6 million tokens during the breakdown, marking one of the most active sessions of the month.
Momentum accelerated after FIL failed to recover the $1.52 resistance level earlier in the week. Once the token retested $1.43, volume jumped 85% above its average, confirming decisive institutional selling as that support gave way. The model also highlighted a sixfold volume increase during an attempted reversal, suggesting strong distribution rather than genuine buying interest.
Filecoin drops sharply while market turns risk-off
Despite the pressure, the price managed to find temporary stability near the $1.37 session low. Analysts noted this level as a possible short-term floor, though the overall trend remains fragile.
The downturn in FIL comes as DePIN tokens broadly underperformed against the rest of the market. Investors rotated out of infrastructure-centric plays while Bitcoin slipped under $91,000, dragging sentiment lower. The CoinDesk 20 index was down 3.4% at the time, reflecting a broader risk-off stance among digital asset traders.
Market watchers caution that while FIL has identified an initial landing spot, recovery will depend on whether broader market conditions stabilize.
FIL now faces immediate resistance at the $1.39 rejection area, followed by the previously broken $1.43 level, which has flipped into overhead resistance. A sustained reclaim of $1.43 would be the first signal that buyers are attempting to regain control.
On the downside, if the $1.37 floor fails to hold, analysts point to the $1.30–$1.35 zone as the next logical support region. With selling volume still elevated, volatility is likely to remain a factor in the sessions ahead.
