The top DeFi token YFI has crashed by 20% after the long parabolic run over the past few weeks. The Ethereum-based asset traded at $4,200 a week ago and yesterday it hit $16,500 which is a gain of more than 300% in seven days. However, the asset started to reverse so let’s find out more in the altcoin news today.
The top Defi token YFI is down by 20% over the past 24 hours as the market believes the asset enters the overbought or overvalued territory. In the past 24hours, YFI dropped by 20% and is now trading at $12,000 which is $4500 lower than the highs seen on Thursday. This comes as the rest of the market including other Defi tokens started dropping to the downside as well. Bitcoin is down by 2.5% over the past day while Ethereum posted a 6.2% loss. Bitcoin’s performance over ETH and YFI shows that the market is still investing in it as a safe-haven asset.
One analyst noted that the technicals of the asset remain in a good spot so the analyst in question noted that the Elliot Wave looks favorable for YFI, and that it could move towards $20,000 in the upcoming days. Elliot Wave is a form of technical analysis that suggests the markets move in predictable waves that are created by the psychology of the investors. The fundamentals are also bullish for the cryptocurrency.
The total value of the tokens locked in DeFi hit $1 billion recently for the first time ever which is higher than it was a day ago. YFI was benefiting from the launch of the Curve’s CRV token which is pushing more capital to be deposited in the exchange along with the launch of more products by Yearn.Finance’s founder.
Speaking of which, Over the past few weeks, the YFI community members were driven by the price surge of the asset and the hopes to hit new highs came true after the coin surged to new highs of $12,000 before facing a huge influx of selling pressure that caused it to dip as low as $9000. The high price per unit was looked upon as a feature that benefited the price action as it has allowed it to stand apart from the rest of the tokens with more “standard prices.” However, there’s a growing movement among the governance participants to conduct a token split.
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