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

Filecoin price fell 7% to $3.2 on Monday amid the broader market correction. Over the past 24 hours, the cryptocurrency market has seen total liquidations of approximately $1.23 billion, according to coin glass data. Although supply pressure slightly eased during U.S. market trading hours, the bearish sentiment persisted for most major coins.

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Filecoin to Enhance Network Capabilities with NV23

Filecoin is on track to uplift network capabilities with network version 23, known as Waffle — scheduled to hit Mainnet on August 6, 2024. This upgrade will introduce some key features to help improve performance and expand functionalities.

As per a blog post shared on Waffle upgrade, one of the major highlights of NV23 is the soft launch of Fast Finality under FIP-00086, which starts the passive testing of F3 on the mainnet, laying the groundwork for potential future updates like NV24

Furthermore, NV23 is going to add support for legacy Ethereum transactions—like Homestead and EIP-155—with FIP-0091. The integration will make the network compatible with tools and wallets supporting Ethereum and enable easier onboarding for Ethereum users by bridging across the blockchain space.

Moreover, this Waffle upgrade will bring about a Non-Interactive Proof of Replication, as specified in FIP-0092. This helps the sealing activities be separated from the storage tasks and run independently to reduce operation costs and gives the storage providers more control over scheduling their sectors for window post deadlines.

Overall, the NV23 update represents Filecoin’s ongoing commitment to innovation and efficiency, aiming to improve its blockchain solutions’ utility and connectivity.

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Filecoin Price Plunged to Oversold Region

Filecoin price in the daily chart shows a 10-day loss streak which plunged its value from $4.44 to $3.3— a 29% decrease. Amid the market sell-off today, the FIL retested the $3 support level that bolstered buyers for a 175% rally in Quarter 4 of 2023.

The long-wick region candle at the aforementioned support reflects the demand pressure intact for this altcoin at a discounted price. The upcoming waffle upgrade may spark a sudden uptick for FIL to sustain above $3, but the true growth behind this development will happen over time.

The Relative Strength Index (RSI) dropped to the oversold region, highlighting an overextended downfall that should soon witness a relief rally. A potential rebound could push the asset 46% to challenge the resistance at $4.8.

On the contrary, Filecoin price has witnessed dynamic resistance from the 50-day Exponential Moving Average (EMA) slope, which could renew supply pressure. A failed rebound could accelerate the market correction and breach $3 support. The post-breakdown fall may push FIL price 26% to test the December 2022 low at $2.4.

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