Yearn.finance (YFI) is Back in Business: +50% in the Trading Day
Depression, apathy and inaction. Back in late December, these words perfectly described the YFI market, which significantly differed from other markets.
During this time, while UNI managed to grow by 40%, the YFI price moved within the range of 5% with high risks of falling to $15,000.
However, the key price zone of $21,380-22,320 withstood the pressure and breathed new life into the token. On 3 December, buyers managed to break the local trend of sellers and completely deny the possibility of working out the figure “Head and Shoulders”.
The range of $21,380-22,320 is under the full control of buyers
After several sellers’ unsuccessful attempts to return the price to the range of $21,380-22,320 on 7 January, a new growth wave began, in the usual YFI style.
In just one day, buyers managed to raise the price by 50%, breaking the range of $28,000-32,000. By setting a local high $37,185, buyers came significantly closer to the target we set in the previous article.
Trading volumes during the YFI price growth momentum were identical to volumes during the growth period in November. The era of trading without volumes in the YFI market, which began in December, is behind us. YFI is again in the top 3 DeFi tokens in daily trading with a result of $1,827,708,567.
The high volatility of the YFI may lead to a new consolidation
Though, the main highlight of the YFI market is insane volatility. As confidently as buyers were able to raise the price by 50%, so today sellers tested for strength the mark of $24,513:
The Yearn.finance project token continues to attract margin traders and give them vivid emotions from trading. This time the daily euphoria was drastically replaced by complete disappointment. Thus, does this maneuver of sellers mean the end of the token price growth?
High sellers’ aggression may slow the growth of Yearn.finance (YFI) until 11 January. During this time, a new consolidation in the form of triangle is likely to form.
The targets of this consolidation are to suppress sellers’ aggression at relatively low YFI prices completely and to fix above the range of $28,000-32,000. Breaking this consolidation up will break the historic high of $44,000.
The alternative scenario is a second attempt to break $21,380-22,320 will begin after breaking the mark of $26,000. A prerequisite for this may be the beginning of the BTC price correction.
As we can see, during the slight turbulence in the BTC market today, YFI significantly suffered. Given his weak position of locked funds to the project – no one will be surprised if tomorrow the YFI price will be around $15,000.
Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.
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