The Coinbase traders lost $24,000 on Yearn Finance after the token debuted on the exchange so let’s find out more in our altcoin news today.
The perfect time to buy a cryptocurrency is a hard task. The DeFi investors learned this the hard way when they rushed to buy YFI once it was listed on Coinbase. From that moment on, it’s been almost only downsides which left everyone that bought it, empty-handed. Will Yearn finance recover and soften the fall or will the investors continue to try and get their money back?
In the past, once Coinbase listed a coin it meant big gains. Even just the gossips about the listings sent XRP soaring in 2018 from $1 to more than $3.00. These days, however, getting listed on Coinbase is like getting the kiss of death. YFI from the moment it got listed on the exchange, fell by 65% or even more. The charts show that Yearn. Finance had a devastating drop and investors that got purchased it was left with the dust as they who bought one of the 30,000 YFI tokens in existence are now out of $25K.
The Coinbase traders lost more than $24,000 but the exchange’s charts are only a part of the story. From that moment on, the Defi token made its debut on Coinbase started the head in the head and shoulders chart formation of YFI/USD charts. The bounce that you can see in the charts, formed the right shoulder which led to a breakdown of the neckline from the strong downward momentum. YFI/USD dropped by more than 65% from the peak of the reversal pattern which will target a closer look at the cost of one BTC. It’s not quite clear why the listing on Coinbase led to a fallout in the asset that saw only upsides but perhaps adding another gateway on fiat created a flood gate for profit-taking.
Funds will flow back into the low supply DeFi token which causes the valuation to increase once again as investors learned that timing the markets it’s not an easy task. Buying the bottom on YFI could be a lucrative position but attempts to catch on the price movement could end up being disastrous.
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