Just a few hours ago, the DeFi Yearn.finance (YFI) token reached a new high, this time at $27,241, far exceeding the highest price Bitcoin ever touched.
Everything points to the fact that the bullish resumption of YFI was driven by the inclusion of the token in the Aave market protocol, and speculations about a possible association with FTX.
Aave is currently the largest DeFi protocol, with over $1.52 billion blocked. FTX is one of the leading exchanges for cryptomoney derivatives.
Recently, we commented that the price of YFI will most likely end up outpacing Bitcoin’s; and so it did. With the strong upward momentum from rising token demand, and only 30,000 units available, it was difficult to imagine a possible drop in price.
But what about the current situation? Will it not stop rising? Here’s an analysis of the price chart to find out.
YFI increases 50% thanks to the Binance effect
Technical analysis of Yearn.finance (YFI)
The current price of YFI is $24,840, dropping slightly after reaching the recent all-time high.
We are currently seeing momentum building, and you may still be looking for a new record before you try to back up.
On the daily chart the trend is clearly upwards in the short term, as the highs and lows are rising.
The 8-day EMA and 18-day SMA moving averages support this direction, and worked as dynamic supports, while Yearn.finance picked up enough demand to generate the momentum we see developing today.
Immediate support on the daily chart is at $14,465, and as long as it is not crossed, the short term trend remains intact.
After the price broke through the previous high of $16,465, the ground was completely cleared, as there are no areas above where supply has been previously generated.
Seen in this way, the moon is the limit, and the upward trend for the moment will continue to look for new highs.
However, we have to be very careful, because the best part has already happened. The more Bitcoin Profit rises, the more they are encouraged to take profits, and the less big investors risk entering, without first seeing a major setback that would allow them to take advantage of good prices.
What is the difference between the ICO and the DeFi?
In the 4 hour time frame the scenario is the same, the bulls have full control of the current token Yearn.finance.
In this graph you can see how the momentum is developing, and you start to notice a bit of a slowdown.
Even though a setback may be starting, there are still not many signs to confirm it.
The EMA 8 and SMA 18 4-hour period moving averages are currently bullish, as is the SMA 200.
The support that must be respected to maintain the intraday uptrend is at $17,950.
At the moment, the odds are totally in favor of the continuation of the upward trend, so sooner or later we will see Yearn.finance (YFI) reaching new highs.
All our publications are for information purposes only and should not be relied upon as investment advice.