Filecoin (FIL) Price Drops Below $2.38 Support, Bearish Momentum Surges

I observe that Filecoin (FIL) has recently fallen to $2.30, marking a 1.33% decrease. The critical support level at $2.38 has been broken, which can be a bearish signal for the cryptocurrency. Technical indicator analysis shows that the RSI is at 36.42, indicating bearish momentum and that the asset is nearing oversold conditions. Additionally, the price is at the lower Bollinger Band, further affirming the downside bias in the current trading session.

This decline suggests increased selling pressure and a potential continuation of the downward trend if the support at $2.38 remains broken. Traders should be cautious and look for confirmation signals before considering long positions. Conversely, if the price finds support and rebounds, it could signal a short-term correction or consolidation phase. The overall technical setup currently favors the bears, with momentum aligned to a downward move.

It is essential to keep a close watch on key support and resistance levels, alongside volume indicators, to gauge whether the downside will extend or if a reversal might occur. Market sentiment appears negative at the moment, which could lead to further declines unless there is a quick recovery or positive catalyst.