Will Filecoin’s Waffle Upgrade Trigger a Rebound for FIL Price?

Like other altcoins, Filecoin (FIL) faces intense volatility following the wider market collapse. The latest data from several price tracking platforms shows that FIL’s price has decreased by a staggering 16.38% in the last 24 hours.

This decline leaves investors at the mercy of uncertainty despite a promising development slated for Tuesday, August 6. Here is what could be in line for the cryptocurrency.

Traders Overlook Filecoin’s Upgrade, Choose to Follow the Money

At press time, FIL trades at $3.03 — the lowest value the token has reached in more than ten months. Despite the notable downswing, Santiment shows that the Funding Rate has turned negative.  

Funding Rate gives insights into traders’ expectations. When the ratio is positive, it means the perpetual price is trading at a premium to the spot price, also indicating that traders are betting on a price increase.

However, negative funding signifies that traders anticipate a further price decrease while noting an increase in short contracts. Therefore, Filecoin’s Funding Rate reveals that market participants do not plan to countertrade the current price movement despite doing that since the month began.

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Meanwhile, the actions of these traders have not affected the perception the broader market has about FIL. According to Santiment, the Weighted Sentiment has risen into the positive region. 

Weighted Sentiment measures social volume regarding an asset expressed in a positive or negative manner. 

Anytime the reading is in a positive region, the average comment about a cryptocurrency tilts toward optimism. Conversely, a negative reading implies that otherwise.

This optimism could be linked to Filecoin’s Waffle upgrade, which is slated for August 6. Codenamed NV23, the upgrade aims to enhance compatibility with the Ethereum ecosystem and reduce the time taken for transaction confirmation. 

FIL Price Prediction: More Bears, No Bulls

In July, FIL consistently registered daily green candlesticks that took the price from $3.47 to $4.80. With all of those gains erased, traders will be wondering if the altcoin could be set for a rebound. 

As shown in the chart below, bulls are clearly out of the picture, as indicated by the Bull Bear Power (BBP), as it is fondly called. The BBP establishes the relationship between bulls’ and bears’ strength.

Bulls (buyers) are stronger when the BB rises in the positive region. However, at press time, the BBP is in the negative region, suggesting that bears are dominating. If this continues, FIL’s price risk drops below $3 and could decline to $2.87.

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However, if buying pressure begins to gain momentum, the value of FIL may increase. If this happens, the price may rise toward $3.56.