FILE token fell to $0.98 on Thursday, shedding 5.24% in a single day as aggressive selling swept through the market. The drop marks a sharp reversal for an asset that had held above $1 for the past week, and trading data suggests the sell-off hasn't shaken the confidence of the biggest players.
Why the price broke down
Heavy sell orders overwhelmed buy-side support during the afternoon session, pushing FILE below the psychologically important $1 mark. The rapid decline triggered stop-losses and forced some late-arriving retail traders to exit at a loss. Volume spiked as the price fell, confirming that the move wasn't just noise — real capital was exiting positions.
Yet not everyone is running for the exits. Derivatives data from the top FILE traders shows that 65.4% of them still hold long positions. That's an unusually high ratio for a day when the spot price is getting hammered. It suggests the professional crowd sees the dip as temporary or as a buying opportunity, not the start of a deeper rout.
Open interest tells a different story
Open interest in FILE futures and options is climbing even as the spot price slides. Rising open interest during a price decline typically means new short positions are being opened — but in this case the long dominance among top traders complicates that reading. More likely, the surge reflects a battle: bears piling in on the downside while bulls add to their longs, betting the price will snap back.
The divergence between spot price and derivatives positioning is exactly the kind of setup that can lead to a sharp reversal. If the longs are right and selling pressure exhausts itself, FILE could recover quickly. If the bears keep control, open interest could become fuel for a further drop as forced liquidations kick in.
A technical target on the horizon
After the sell-off, FILE's chart shows a potential recovery path back to $1.10, according to technical analysis. That level represents a previous support-turned-resistance zone and sits roughly 12% above Thursday's close. For the token to reach it, buyers need to reclaim $1 first and then build momentum through a cluster of moving averages now acting as overhead resistance.
The next few trading sessions will be critical. If FILE can hold above $0.95 and start to form higher lows, the $1.10 target becomes realistic. A break below $0.90, on the other hand, would invalidate the pattern and likely send the price testing lower support levels that haven't been touched in months.
For now, the market is watching whether the long-heavy derivatives book will prove prescient or whether the selling pressure has more room to run.
