Filecoin is facing selling pressure and has lost 4% in value.

Filecoin (FIL) is going through a tough period, losing 4% of its value alongside the general decline in cryptocurrency markets. The cryptocurrency has surpassed several support levels at $2.39, $2.37, and $2.36, indicating an increase in selling pressure.

According to CoinDesk Research's technical analysis model, this cryptocurrency belonging to a decentralized storage network witnessed the highest contraction during the U.S. trading session, especially accompanied by high trading volumes. Panic sales reached a volume of 530,000 in the last trading hour.

The model’s data indicates that the token broke critical support levels due to institutional liquidations and sales occurring with increased volume. Last week, the network announced ongoing preparations for core protocol updates, new artificial intelligence initiatives, and the FIL Developer Summit 7.

In recent trades, Filecoin was valued at $2.31, showing a decrease of 4.4%. While the broader cryptocurrency market also declined, the CoinDesk 20 index lost 3.4% of its value.

In technical analysis, the resistance points at $2.41 - $2.42 showed strength during early trading sessions but subsequently experienced a downturn. Additionally, the breaking of support levels at $2.39, $2.37, and $2.36 is considered a sign of weakness from a technical perspective. The volume rising to 5.67 million during sell-offs confirms institutional liquidation patterns. The peak volume of 530,000 observed in a single minute signals panic sales and capitulation.