In This Post:
- Filecoin’s Waffle upgrade improves network with Ethereum transaction support and Fast Finality.
- FIL retests $3 support, facing resistance from the 50-day EMA.
- RSI shows potential relief rally from the oversold region.
Filecoin is set to improve its network with the new “Waffle” upgrade on August 6, 2024. This upgrade aims to make the network faster and more functional. Despite Filecoin’s price dropping to $3.2 due to market trends, the Waffle upgrade brings hope for a price rebound.
The Waffle Upgrade and Its Features
The Waffle upgrade, also called network version 23 (NV23), brings important new features. One major feature is the start of Fast Finality under FIP-00086. This begins testing on the mainnet and sets the stage for future updates.
Another key feature is support for older Ethereum transactions, like Homestead and EIP-155, through FIP-0091. This makes Filecoin work with Ethereum tools and wallets, making it easier for Ethereum users to join Filecoin. The upgrade also includes a Non-Interactive Proof of Replication (FIP-0092). This separates sealing activities from storage tasks. It reduces costs and gives storage providers more control.
Filecoin Price Analysis and Market Trends
Filecoin’s price has been very volatile recently. It dropped 7% to $3.2 on Monday due to a broader market correction. In the last 24 hours, the cryptocurrency market saw liquidations of around $1.23 billion. This added to the bearish mood affecting many major coins.
Despite the drop, Filecoin’s price retested the $3 support level. This level previously triggered a 175% rally in Q4 2023. The 50-day Exponential Moving Average (EMA) has been a resistance barrier since April 2024. This makes it crucial for potential price movements.
Potential Rebound and Future Outlook
The Relative Strength Index (RSI) for Filecoin has dropped to the oversold region. This suggests the decline might be overdone, hinting at a possible relief rally. If demand remains, a rebound could push the price up by 46%, challenging the resistance at $4.8.
However, Filecoin faces resistance from the 50-day EMA, which could renew selling pressure. If the price fails to rebound and breaks the $3 support, it might speed up the market correction. This could push the price down by 26% to test the December 2022 low at $2.4.
Looking Forward
The Waffle upgrade is a big step forward for Filecoin. It brings features like Fast Finality and Ethereum transaction support. While the market correction has impacted Filecoin’s price, the upgrade and the oversold RSI signal a possible relief rally. Investors should watch the $3 support level and the 50-day EMA resistance to understand the next potential price movements for Filecoin.
