YFI Breaks Above $11,000 As Investors Grow Euphoric: Analysis
YFI breaks above the $11,000 level, stealing the spotlight again from the rest of the cryptocurrency market as we are reading more in the latest altcoin news.
Yearn.Finance launched its governance token back in July and the altcoin has been shooting up since. It debuted on the market at a low of $31.65 but the price shortly increased over 34,364%. The so-called “valueless” governance token increased recently to a new all-time high of nearly $11,275 but the different technical indexes suggest that the altcoin is about to retrace.
YFI breaks above the $11,000 price level and its meteoric price action has not gone unnoticed. The data from LunarCRUSH reveals that over the past day, more than 4 million YFI related mentions were registered over different social media networks. About 60% of all of the social interactions were bullish about the altcoin. The rising chatter around the cryptocurrency allowed it to move to the sixth position on Santiment’s Emerging trends list which is usually a negative sign.
Dino Ibisbegovic, the head at Santiment said that when the crowd pays a lot of attention to a cryptocurrency because of a pump, it is usually followed by a pullback:
“Within the next 12 days after a coin claims a top 3 position on our list of Emerging Trends, its price drops by an average of 8.2 percent. Based on our study, once the increased crowd attention subsides (which usually happens in a matter of hours/days), a short-term price correction – or consolidation – is often a likely outcome.”
The Tom Demark sequential index added credence to the outlook. This technical indicator presents a selling signal in the form of a green nine candlestick on the charts. The bearish formation predicts a one to four candlestick correction before the uptrend goes on. Given the TD setups’ accuracy to the time local tops on yearn.finance’s trend, the sell signal has to be taken seriously despite the incurred losses.
If a correction is to happen, the GIOM model shows that the most crucial supply wall underneath YFI sits at $5,700. About 244 addresses previously purchased more than 16,000 YFI. The main area of interest could have the ability to absorb selling pressure but the holders will try and remain profitable in their long positions.