The DeFi stars on the market Chainlink’s LINK, Yearn.finance’s YFI and the Binance Coin BNB, all crashed by more than 10%, while Bitcoin is surging. Most of the coins in the defi space led the last bullish impulse but now fell more than 10% in the past 24 hours as we are about to read more in the upcoming chainlink crypto news.
The DeFi stars among which YFI, is the magical success story which comes and goes on the crypto market. Yearn Finance launched a sub-$5000 but has since doubled the Bitcoin peak of $20,000. Today, it remains extremely expensive and while BTC did absorb some capital from the 10% YFI drop, the support is holding horizontally and at the middle Bollinger Band. Holding here could shoot the price of YFI back to retest the highs.
Binance Coin on the other hand seems to be an at an impasse where the bulls are fighting the bears but we can’t say they are winning. The evening star pattern that formed at the top of the recent uptrend, could be a strong reversal signal. However, the support from the February high, makes BNB hold up well despite the 10% intraday drop.
Chainlink has low chances of holding up according to the Average Directional Index. This tool did well when marking when LINK/USD bullish impulse kicked in and then again when it surprised everyone and shot up upwards. Now it flipped bearish and the trend is enhancing. Several supports were lost on the way back which remains at an uptrend line that is in bigger danger of leaving Chainlink exposed to a deeper correction.
These tokens, LINK, YFI and BNB could be dropping because of a number of factors. For one, the sentiment surrounding the swap craze has turned negative so the investors could be less blinded if the bubble bursts. If Bitcoin holds up the support at $10,000 and prompted the profit taking from altcoins back into BTC, the dominance could be dropping and the bleed from these Defi tokens could just be the start of the carnage to come.
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