Filecoin (CRYPTO:FIL) has recently hit a seven-month low, dipping below $5 amid persistent downward trends.
The downturn has triggered $20 million in long liquidations since June, signaling a cautious retreat among investors.
FIL's high correlation of 0.90 with Bitcoin (CRYPTO:BTC) has exacerbated concerns, as Bitcoin's bearish phase adds pressure.
Despite attempts at recovery, FIL faces significant resistance at key levels like $4.6 and $5.0, with bullish prospects contingent on breaking these barriers.
However, failure to hold above $4.6 could lead to further consolidation or even deeper declines below $4.2.