FIL breaks below key support, market risk signals intensify

Filecoin (FIL) has recently underperformed, with a decline of -4.3%, and the price falling to $1.27, clearly weaker than the broader market. After volume-driven breakdown below the critical support level of $1.25, a clear bearish confirmation signal has appeared on the technical side. Behind this decline, macroeconomic pressures cannot be ignored—Bitcoin's downward movement, a decrease in overall market risk appetite, coupled with relatively dense liquidation activities in the spot market, have led to tense sentiment on both the bullish and bearish sides.
From a technical perspective, if FIL continues to decline, the next line of defense is at $1.23, followed by support at $1.20. To improve the technical outlook during a rebound, it needs to recover above $1.25. Currently, the market is in a risk-release phase, and traders should closely monitor the performance of these key levels.