Filecoin Drops as Bears Test Support Amid Institutional Activity
On December 23, 2025, Filecoin (FIL) price declined by about 2% to $1.29 after trading from $1.32, forming a bearish channel characterized by lower highs.
Trading volume reached 7.59 million FIL, approximately 180% above the 24-hour average, during a rejection at the $1.33 resistance level, indicating distribution by institutional investors.
Despite this bearish pattern, a sharp bounce from the $1.28 support level suggests renewed institutional buying interest at key price points.
Technical analysis shows Filecoin is trading within a descending channel, with an immediate upside target between $1.31 and $1.32 (around 3.5%). However, a break below $1.28 could open the path to further declines toward $1.26.
The broader cryptocurrency market weakened as well, with the CoinDesk 20 index down about 3.1% at the time of publication.
According to CoinDesk Research's technical analysis model, trading volume reveals the underlying dynamics, highlighting that institutional buyers remain active despite the bearish trend.
No fundamental catalysts were identified, rendering technical levels the primary battleground for price action.
