After correcting more than 80%, the bulls have once again taken control of YFI de yearn.finance bringing it up to $16,000.
Few crypto-currencies have given as much talk this year as YFI as their price is soaring. This is the governance token of the DeFi yearn.finance platform, capable of reaching an all-time high of over $43,966 within days of going to market.
The performance in the first month and a half of YFI’s life was truly exceptional; however, quickly after reaching that peak, a major correction began, dropping 83% to what looks like a bottom at $7,451.
Today it appears that that red tide in the market for this token seems to have ended. This is because in the last 3 days its price has jumped 110%. At the time of this writing, YFI is trading at $15,570.
So are we seeing an effective upturn, let us now look at current behaviour, for clues as to what may happen in the near future.
YFI jumps thanks to general ecosystem positivism and return of capital to the DeFi
We don’t know exactly what is causing the big jump in YFI, but with the platform’s good fundamentals, it is very likely that it is just big investments taking advantage of discounted prices to get on the train.
After an 80% correction promoted by whales disposing of their belongings with exorbitant profits, it was an excellent time 2-3 days ago to redo their positions and begin to build up again.
All this return of capital goes hand in hand with the positivism experienced today in the crypto ecosystem, thanks to a Bitcoin that seems not to want to stop until it marks a new historical maximum.
And although the rise of Bitcoin Supreme and its increased dominance may largely hinder the altcoins, it’s also possible that at the current price of Bitcoin the momentum may start to run out in the short term. This generates strong profit taking, which can be transferred to other areas where the excitement is just beginning.
Likewise, the entire DeFi market, to which YFI belongs, is also being driven by good expectations. This is reflected in the TOP profits of the largest in this ecosystem, where 9 out of 10 are green for the current day, and a total blocked value that is heading for a new all-time high.
Technical analysis of YFI as it jumps up
If we look at the daily chart we can see how the rise of the last 2 days has been very large, compared to the last 2 weeks.
Thanks to this incredible jump in YFI, the short term downward trend that had been developing is being challenged. The current behaviour seems quite determined to break it completely.
An upward transition is not yet confirmed. We should expect at least some small correction and new momentum that affirms that the bulls have taken control.
Chart 4H of yearn.finance vs US dollar
In the 4-hour candlestick time frame we do see a well-defined uptrend, thanks to a continuous succession of rising highs and lows, followed by rising cross-country moving averages.
The SMA of 200 4-hour periods is being challenged. This dynamic average alludes to the downward trend that is still in the short term, but is currently being tested. Observing an effective breakout of this moving average is a good sign for the near future.
