Filecoin Price Poised For Q1-Style Rally After Waffle Network Update

Filecoin price is back in the green as it consistently prints bullish candles in lower timeframes. The leading DePIN token surged 10% to exchange hands at $4.56 amid a trend reversal triggered by news of a network update called Waffle.

Price data by CoinMarketCap revealed modest increases in the 24-hour trading volume and the market cap to $138 million and $2.6 billion, respectively.

A Peek Into Filecoin’s Waffle Upgrade

Filecoin announced a new network update codenamed Waffle set to launch on the mainnet on August 6, 2024. With this update, developers intend to roll out several key improvements aimed at enhancing performance and unleashing new capabilities.

According to a blog post published on the update, the key updates have been bundled up in the Filecoin Improvement Proposals (FIPs) in NV23 including the launch of the FIP-00068 which enables F3 testing in the mainnet. Additionally, it sets the framework for the fast finality in future upgrades, featuring a potential holistic rollout in nv24.

The Waffle update includes support for Legacy Ethereum Transactions in FIP-91. Filecoin developers will add support for Homestead and EIP-155 Ether transactions while ensuring compatibility with other Ethereum tools and wallets.

The third update under the FIP is a non-interactive proof of replication or FIP-0092. With this, the network is set to introduce a raft of changes to the sector-sealing process. Sealing will be separated from storage to allow for independent execution.

In the grand scheme of these improvements, Filecoin targets enhanced performance, a broader ecosystem integration, and a faster, more efficient network.

“This upgrade is set to enhance Filecoin’s capabilities, efficiency, and integration with the broader blockchain ecosystem!” Filecoin said in the blog post.

In other developments, Filecoin announced a new strategic partnership with SingularityNET aimed at transforming AI data storage. This will achieved through “secure and verifiable model training.”

Filecoin appears to be making headway as the go-to DePIN project for AI projects including Bagel and Nuklai.

“By leveraging Filecoin’s robust decentralized network, these collaborations aim to enhance AI development, emphasizing the network’s growing influence and importance in the AI and blockchain sectors,” the statement continued.

Filecoin Price Begins Breakout, But For How Long

The news of the Waffle update has brought FIL on the global crypto map as traders rush to make early entries. FIL price bounced off slightly above $4, with support steadied by an ascending trend line.

A subsequent increase in the trading volume fuels the rally with FIL seeking higher support above $4.5. Holding above all three key bull market indicators; the 20-day Exponential Moving Average (EMA), 50-day EMA, and 200-day EMA validates the uptrend.

On top of this improving technical structure is a buy signal from the Moving Average Convergence Divergence (MACD). The next key hurdle would be the region between $4.8 and $5. Should bulls not break this resistance, investors can expect a new sideways movement with support at $4.5 holding.