Will Filecoin Price Hold $3 Support Ahead of the Waffle Upgrade?

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As a seasoned crypto investor with a decade of experience navigating market turbulence and technological advancements, I must say that the current state of Filecoin (FIL) seems to be a familiar dance between bearish corrections and bullish developments. The recent 7% drop on Monday, amidst a broader $1.23 billion liquidation event, is a stark reminder that market volatility is an inherent part of this space.

On Monday, Filecoin’s price dropped by 7%, reaching $3.2, due to a broader market downturn. Over the last day, the overall cryptocurrency market has witnessed about $1.23 billion in liquidations, as per data from Coin Glass. Despite a slight relief in supply pressure during U.S. trading hours, pessimistic feelings towards major coins continued to dominate.

Filecoin to Enhance Network Capabilities with NV23

According to the schedule, Filecoin is set to enhance its network capabilities with Network Version 23, popularly known as “Waffle”. The anticipated launch date for Mainnet is August 6, 2024. This update will bring essential features to boost performance and extend functionalities.

According to a blog post about Waffle upgrade, one significant feature introduced in NV23 is the initial deployment of Fast Finality through FIP-00086. This marks the beginning of testing F3’s passive operations on the mainnet, paving the way for potential improvements such as NV24.

As a researcher, I’m excited to share that we’re enhancing NV23 to accommodate legacy Ethereum transactions, such as Homestead and EIP-155, through FIP-0091. This integration will ensure our network aligns with tools and wallets that are Ethereum-compatible, thereby simplifying the onboarding process for existing Ethereum users. Essentially, we’re creating a seamless bridge across the blockchain ecosystem to foster easier interaction between our networks.

Additionally, with this Waffle update, we’ll implement a Proof of Replication without user interaction, as outlined in FIP-0092. This separation allows sealing operations to operate independently from storage tasks, reducing costs and providing storage providers with greater flexibility to schedule their sectors according to window post deadlines.

Essentially, the NV23 update underscores Filecoin’s dedication towards advancement and optimization, with a focus on enhancing the practicality and interconnectedness of their blockchain offerings.

Filecoin Price Plunged to Oversold Region

As an analyst, I’ve observed a challenging streak over the past ten days for Filecoin (FIL), with its price dropping from $4.44 to $3.3—a significant decrease of approximately 29%. Today’s market turbulence has led FIL to revisit the crucial $3 support level. Interestingly, this isn’t the first time we’ve seen FIL testing this level; it was also the foundation for a remarkable 175% surge in Q4 of 2023, which I believe is noteworthy as history often repeats itself in financial markets.

As a crypto investor, I’ve noticed that the long wick on the candle at the stated support level indicates a strong demand for this altcoin, even at its current discounted price. The upcoming Waffle upgrade could potentially ignite a sudden surge in FIL prices, helping it sustain above $3 initially. However, the real growth from this development will likely unfold gradually over time.

In simpler terms, the Relative Strength Index (RSI) has fallen into an area suggesting excessive sell-off, which may lead to a recovery rally. There’s a possibility that this recovery could boost the asset by approximately 46%, potentially taking it up to compete with the resistance level of $4.8.

Will Filecoin Price Hold $3 Support Ahead of the Waffle Upgrade?

Instead, it’s important to note that the Filecoin price has faced significant resistance from the slope of the 50-day Exponential Moving Average (EMA), potentially leading to increased supply and a possible market correction. If the rebound fails, this correction could extend, causing the price to drop below its current $3 support. After such a decline, the Filecoin price might fall by approximately 26%, reaching a potential low of around $2.4, last seen in December 2022.

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2024-08-05 19:50