Few cryptocurrencies have given as much to talk about this year as YFI as their price jumps volatilely higher. This is the governance token of the DeFi yearn.finance platform, capable of reaching an all-time high of more than $ 43,966 within days of being released.
YFI’s performance in the first month and a half of life was truly exceptional; however, quickly after reaching that high, a large correction began, falling 83% to what appears to be a bottom at $ 7,451.
Today it seems that this red tide in the market for this token seems to have ended. This is thanks to the fact that in the last 3 days its price has jumped 110%. At the time of writing, YFI is trading at $ 15,570.
So are we seeing an effective bullish resumption? Let’s take a look at the current behavior below, looking for clues as to what may happen in the near future.
YFI jumps thanks to general positivism in the ecosystem and return of capital to the DeFi
We don’t know exactly what is causing YFI’s big jump, but with the good fundamentals the platform has, it is very likely that they are just large investments that take advantage of discounted prices to jump on the bandwagon.
After an 80% correction promoted by whales dumping their belongings at exorbitant profits, it was 2-3 days ago an excellent time to redo their positions and start accumulating again.
All this return of capital goes hand in hand with the positivism that exists today in the crypto ecosystem, thanks to a Bitcoin that seems not to want to stop until it marks a new all-time high.
And despite the fact that to a large extent the rise of BTC and its increase in dominance may hamper altcoins, it must be considered that it is also possible that at the current price of Bitcoin the momentum may start to run out in the short term. This generates strong profit takings, which can be transferred to other areas where the excitement is just beginning.
Likewise, the entire DeFi market, where YFI belongs, is also being driven by good expectations. This is reflected in the gains of the TOP of the largest in this ecosystem, where 9 out of 10 are in the green during the current day, and a total blocked value that is heading to mark a new all-time high.
YFI technical analysis as it jumps strongly to the upside
If we look at the daily chart we notice how the rise of the last 2 days has had a great volume, compared to that of the last 2 weeks.
Thanks to this incredible jump to the upside by YFI, the short-term downtrend that has been developing is being challenged. The current behavior seems quite determined to completely break it.
An upward transition is not yet confirmed. We should expect at least some small correction and further momentum that affirms that the bulls have taken over.
4H chart of yearn.finance vs US dollar
In the time frame with 4-hour candles, we do observe a well-defined uptrend, thanks to a continuous succession of higher and higher highs and lows, followed by upward crossed moving averages.
The 200 4-hour SMA is being challenged. This moving average refers to the downtrend that is still short-term, but is currently being tested. Observing an effective break of this moving average is a good bullish sign for the near future.
All our publications are informative in nature, so in no case should they be followed as investment advice.