Points
- Filecoin （FIL） price drops by 16.38% in the last 24 hours.
- Despite the decline, traders overlook the upcoming Waffle upgrade.
- FIL’s Funding Rate turned negative, indicating traders expect further price decreases.
- Optimism remains linked to the Waffle upgrade scheduled for August 6.
- FIL’s Weighted Sentiment has risen into the positive region.
Like many other altcoins, Filecoin （FIL） is facing intense volatility following the broader market collapse. Recent data from various price tracking platforms show that FIL’s price has decreased by a staggering 16.38% in the last 24 hours. This sharp decline has left investors grappling with uncertainty, despite a promising development scheduled for Tuesday, August 6.
At press time, FIL trades at $3.03, marking the lowest value the token has reached in more than ten months. Despite the notable downswing, the Funding Rate, a key metric for understanding traders’ expectations, has turned negative. A negative Funding Rate signifies that traders are betting on further price decreases and are increasing their short contracts.
However, despite the overwhelming negative sentiment, there remains a glimmer of optimism linked to Filecoin’s upcoming Waffle upgrade. Codenamed NV23, this upgrade aims to enhance compatibility with the Ethereum ecosystem and reduce the time taken for transaction confirmation. This anticipated improvement has fostered a positive Weighted Sentiment among market participants. Weighted Sentiment measures social volume regarding an asset expressed positively or negatively. A rise in this metric indicates growing market confidence, which can be crucial for a potential rebound.
Despite the traders’ actions not reflecting this optimism, the broader market perception of FIL has improved. The combination of technical enhancements and growing positive sentiment could provide the necessary support for FIL’s price recovery.
In July, FIL consistently registered daily green candlesticks, taking the price from $3.47 to $4.80. However, with all these gains erased, traders will wonder if the altcoin could be set for a rebound. According to the Bull Bear Power （BBP） indicator, which establishes the relationship between bulls’ and bears’ strength, bears currently dominate the market. If this continues, FIL’s price risks dropping below $3 and could decline further to $2.87.
However,
if buying pressure begins to gain momentum, the value of FIL may increase. In such a scenario, the price could rise toward $3.56, offering a potential recovery path for investors who have been holding through the recent downturn.
解説
- Funding Rate: A measure indicating the cost of holding a position in a futures contract. When the Funding Rate is negative, it means that traders are paying to hold short positions, suggesting they expect prices to fall.
- Weighted Sentiment: This metric assesses the general mood of market participants based on social media and other sources. A positive reading indicates optimism, while a negative reading suggests pessimism.
- Bull Bear Power （BBP）: An indicator that measures the difference between the highest price and the closing price of an asset. It helps to identify the strength of bulls （buyers） and bears （sellers） in the market.
Filecoin’s current situation exemplifies the broader challenges facing the cryptocurrency market. Despite significant technical upgrades and positive sentiment from parts of the community, the overwhelming bearish market conditions have led to a sharp price decline. Traders are advised to monitor these technical indicators and market sentiments closely to make informed decisions. The upcoming Waffle upgrade could provide the necessary boost for a price rebound, but caution is warranted given the current volatility.