File currency Breaking through key technical support on Monday, the coin fell 5.1% to $1.24 as a sharp spike in volume signaled institutional selling pressure, according to CoinDesk Research’s technical analysis model.
The broader cryptocurrency market also fell sharply, with Bitcoin down 3.5% and CoinDesk 20 down 4.4%.
According to the model, trading volume surged to 11.74 million coins, nearly 400% above normal levels, as bears overwhelmed buyers at the $1.25 support area.
The model shows that the sell-off has accelerated in recent hours, with three consecutive lower lows confirming a breakdown in the technical structure.
This breakout opens the door for further declines to $1.23, with resistance now consolidating at the former support at $1.25.
Technical analysis:
- Major resistance consolidates at $1.35 after failed recovery attempt
- Key support breakout confirmed at $1.245
- Based on the previous structure, the target range for the next major demand zone is $1.23-1.235
- Failure of uptrend support opens door to deeper retracement levels
- An unusual surge in transaction volume, 380% above average, confirms the effectiveness of segmentation
- Massive segmentation indicates institutional participation rather than retail sales
- Key resistance for any easing rally: former support at $1.25
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and reviewed by our editorial team for accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
