The focus of the news is on the deadline for ownership on October 15th, which could result in an annual FIL total issuance volume decreasing by about 75%.
As traders positioned their positions before the change in supply, the price of FIL has risen to nearly $1.25.
As a significant change in token supply approaches, Filecoin news has once again drawn market attention. On October 15th, the six-year ownership plans for Protocol Labs and Filecoin Foundation are expected to come to an end, which will remove an important source of new FIL issuance. This change could reduce the annual total issuance from about 89 million FIL to around 21 to 22 million. Meanwhile, the price of Filecoin has rebounded to near $1.25, making the resistance range of $1.30 to $1.40 a focal point for the market. The key question at present is whether a lower supply will be able to support further price increases, or whether traders will choose to take profits after the recent rebound.
Why is October 15th so important for Filecoin ( FIL )?
The six-year ownership plan for Protocol Labs and Filecoin Foundation will end on October 15th. Together, these two parts contribute approximately 66.7 million FIL tokens each year, in addition to about 21.7 million FIL tokens coming from block rewards.
Once the attribution period ends, the annual total issuance is expected to drop from nearly 89 million FIL to about 22 million, a decrease of approximately 75%. This will eliminate a major source of planned new supply; if demand remains stable, the continuous downward pressure may be alleviated as a result.
However, a decrease in the issuance volume does not necessarily mean that prices will rise. What this change reduces is the inflow of newly released tokens; it does not remove the existing FIL from circulation, nor does it prevent current holders from selling them. Traders will be watching to see if the reduced supply is accompanied by sustained buying interest, and whether there is a stronger demand for the storage services related to Filecoin.
Filecoin Price Analysis: FIL Can it break through $1.40?
Filecoin The current trading price is around $1.24, having rebounded from a low of around $0.70 during the summer. Filecoin The recent trend shows a recovery in a round-bottom pattern, with the token price approaching the resistance range of $1.30 to $1.40. This is the direct challenge faced by the current upward trend.
If the daily close exceeds $1.30, it will enhance the possibility of a breakout and make $1.40 a key focus. If a further breakthrough above this range is achieved, prices may open up room for continued upward movement. However, the chart still needs to establish support above the resistance level to confirm this trend.
On the downside, if it fails to break through the range of $1.30 to $1.40, it could trigger profit-taking. The area between $1.00 and $1.08 includes the nearby moving average levels, and if selling pressure intensifies, $0.90 is also a level that needs attention. The broader support range of $0.68 to $0.72 remains important for this round of structural recovery.
Will a 75% reduction in supply drive up the price of FIL?
The reduction in the issuance of Filecoin has brought about significant changes to its token economics, but the price reaction will depend on demand and market positioning. If it can continue to break through $1.30, $1.40 may come into view as the deadline of October 15 approaches. If FIL encounters resistance at that level, traders might regard the range of $1.00 to $1.08 as support.
