As Filecoin buckles up for a new update, here’s how FIL reacted
- Filecoin’s TVL increased by 4% in the last 24 hours, and so did its price.
- A few of the FIL metrics and market indicators looked bullish.
Filecoin [FIL] is all set to launch its next major network upgrade on 27 April, 2023. The updates named Network v19 Lightning and nv20 Thunder will bring a bunch of quality improvements to the platform.
Realistic or not, here’s FIL’s market cap in BTC terms
All about Filecoin’s upcoming update
The upcoming two-stage rollout is required for FIP-0061, which introduces a new proof that reduces the grindability of windowPoSt and further secures the network.
⚡️@Filecoin expedited nv19 upgrade is coming this Thursday, Apr 27th at 13:00 UTC
🆕Lotus users MUST update your node to v1.22.1 or up to stay sync with the network. DO IT NOW!
‼️don’t hesitate to ask any question you have in -lotus-help pic.twitter.com/pKdSlpCgDB
— Lotus (@lotus_web3) April 24, 2023
With the first upgrade, the new proof type will start to be accepted by the protocol. Whereas the second upgrade (nv20) will mark the spot when the old proof type will no longer be accepted.
This permits a seamless rollover phase where both types of proof are accepted. Earlier, it was announced that the upgrades would take place in May, but later the date was preponed to 27 April.
Thanks to the efforts made for the update, Santiment’s chart revealed that Filecoin’s development activity increased considerably over the last week. However, the news did not manage to increase FIL’s popularity, which was evident from its declining social volume.
FIL’s price action turns bullish
As the upgrade’s date approached, exchanges such as Bitfinex announced the suspension of FIL trading for a certain period. This was done to ensure that the upgrade takes place seamlessly.
📢 Please note that we have temporarily paused @Filecoin $FIL deposits & withdrawals due to the nv19 Lighting and nv20 Thunder network upgrade.
✅ Trading of $FIL is not affected
⏳ We will update as soon as deposits & withdrawals resume:https://t.co/LL9eYReUvJ pic.twitter.com/N0phqrulPi
— Bitfinex (@bitfinex) April 25, 2023
Ahead of the upgrade, FIL’s price action turned bullish. According to CoinMarketCap’s data, FIL’s price surged by more than 3% in the last 24 hours. At the time of writing, it was trading at $5.39 with a market capitalization of over $2.2 billion.
The price uptick also showed a positive impact on the network’s value. DeFiLlama’s data revealed that FIL’s TVL increased by over 4% in the last 24 hours, which looked encouraging.
What caused the surge?
CryptoQuant pointed out a possible reason behind FIL’s price surge. At press time, the token’s stochastic was in an oversold position. This could have increased buying pressure and, in turn, increased FIL’s price.
Additionally, FIL’s demand in the derivatives market was also high, as suggested by its green funding rate.
How much are 1,10,100 FILs worth today
More reasons to rejoice
A look at FIL’s daily chart gave more reasons to celebrate, as the overall scenario looked in investors’ favor. The MACD displayed a bullish crossover. Filecoin’s Relative Strength Index (RSI) registered an uptick.
The Bollinger Bands revealed that FIL’s price was entering a high volatility zone, further increasing the chances of a continued uptrend. Though the Exponential Moving Average (EMA) Ribbon pointed out the bears were leading, the distance between the 20-day EMA and the 55-day EMA was narrowing, which was bullish.