Filecoin new update will ease miners’ woes while FIL price runs on fumes
- Filecoin’s miners have been facing issues with the previous releases of Lotus v1.5 updates.
- The next update is scheduled to be launched next week and could reduce gas fees to an extent.
- FIL price has presented sell signals on multiple time frames, which might help reverse the bull rally seen recently.
Filecoin users and miners might benefit from the latest improvement proposal. But, FIL price shows exhaustion as bears prepare to take control.
Tackling rising fees with the newest update
Filecoin, the decentralized storage system, has gained popularity among the Chinese mining community. The approved Filecoin Improvement Proposal (FIP) - 0010 was launched as an update via Lotus v1.5.0.
The intention with this update was to reduce the rising fees due to ‘Window PoSt messages.’ While the proposal was good to go, it caused issues with miners as it made it impossible to restart nodes.
Lotus v1.5.1 wasn’t alone, as the next release, v1.5.2, faced similar challenges.
In response to this, a developer stated,
Sorry about the recent regressions. In our haste to solve the edge-case where windowPoSts were being disputed, we definitely didn't test as thoroughly as we should have. We have three issues reported and fixed in v.1.5.3-rc1, which will be shipped as a release next week after thorough testing.
The latest version is scheduled to be launched within this week and hopes to implement the changes proposed in FIP-0010.
Another significant development around Filecoin was the successful launch of the “Filecoin China Community Forum” operated by CoinSummer. This forum will help developers better understand the problems faced by Chinese miners.
Filecoin price runs on fumes
Filecoin price has seen a 70% increase in the last week. At the time of writing, FIL is trading at $69, just above the 141.4% Fibonacci retracement level.
The TD Sequential indicator flashed a sell signal in the form of a green nine candlestick on the 1-week chart, suggesting that the bullish momentum could be coming to an end. Although there is potential for another upswing to $73.60, a spike in selling pressure could see it retrace towards the $53 support level.
The Relative Strength Index (RSI) adds credence to the bearish outlook. It currently sits above the 70 mark, indicating that FIL sits in overbought territory. Therefore, a retracement for Filecoin price seems imminent and inevitable.
FIL/USDT 1-week chart
Regardless of the bearish outlook, investors should note that a sudden increase in upward pressure could push Filecoin price towards the TD’s risk line at $77.5.A decisive close above this barrier will invalidate the bearish outlook and gather enough momentum to propel FIL price by 23% to 227.2% Fibonacci retracement level at $95.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
