Filecoin (FIL) extends losses below $1.40 as market weakness deepens

• Filecoin price fell 7% to under $1.40 on Thursday to put bulls under pressure.
• The dip comes amid an overall decline for AI tokens.
• Market outlook and technical chart suggest Filecoin could dip to $1.20 and $1.00.

Filecoin price has extended its recent losses, falling by more than 7% in the past 24 hours to hit lows of $1.37.

The decentralized storage network’s token risked further losses as sellers breached the key psychological support level at $1.40.

Broader market weakness, including across the stock market, meant bulls were facing potential downside continuation.

FIL declines as AI tokens see losses

The latest leg lower for Filecoin saw bulls touch levels last seen in October, with prices down across all timelines. However, the token boasts a 117% uptick since crashing to near $0.63 on October 10.

FIL price has declined by about 12% over the past seven days.

As highlighted, the downturn coincides with renewed weakness across the cryptocurrency market. Despite the US Federal Reserve’s December meeting and rate cut, cryptocurrencies failed to rally.

Bitcoin dipped below $90,000 before recovering, dragging the broader altcoin market lower. BTC remains precariously poised above the $90k mark.

Filecoin’s decline also mirrored sharp losses among leading artificial intelligence-focused tokens. Bittensor (TAO), NEAR Protocol and Render (RENDER) all shed gains and hovered red over the past 24 hours.

Notably, AI tokens were seeing a fresh sell-off amid a similar outlook in traditional markets.

In premarket trading, AI-related equities Oracle and Nvidia declined as the broader technology shares market came under pressure ahead of Thursday’s open.

What’s next for Filecoin price?

The $1.50-$1.45 zone served as a key support range for Filecoin price after bears took out the $1.60 level in November.

With price now decisively below $1.50 and the $1.40 buffer broken, bulls risk further downside movement.

In the near term, this bearish outlook will strengthen if the price breaks to $1.30.

Bearish momentum remains dominant on the daily chart.

The Relative Strength Index (RSI) has fallen to 36 and shows room for additional selling pressure.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator signals weakness since a bearish crossover in mid-November. Bears taking over will bring the $1.20 and $1.00 levels into play.

Despite the threat of a downward continuation, bulls still have a slight advantage. A decisive breakout from the $1.30 zone could open the door to a retest of higher levels.

In November, FIL pumped more than 100% in two days as prices rose from lows of $1.32 to highs of $3.92.

Bulls will have to contend with the 50-day exponential moving average near $1.73 if they are to strengthen a potential trend reversal.

The post Filecoin (FIL) extends losses below $1.40 as market weakness deepens appeared first on CoinJournal.