YFI - Remember me?

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Jan 8, 2021

Assets covered: YFI

Metrics used: Price, Daily Active Deposits, MVRV 30D , Social Volume


After what seemed all doom for YFI with a Head & Shoulder pattern playing out and everything else pumping except it... YFI surprised everyone and looks to have started a reversal.

So....It's that time again, yes... to revisit DeFi darling - YFI!

Let's take a look at how things are.

Notable news on YFI

1. wYFI stablecredit coming - burns YFI to mint wYFI, further reducing the already limited supply of YFI. wYFI earns 50% of all fees and acts as seigniorage.

2. Yearn V2 launching soon.


YFI price action - Sanbase

YFI has finally broke out of the trendline resistance with strong trading volume after several tests of the support area (barely made it) and went on to paint more than +50% gains in a day.

Looks to have invalidated the H&S pattern, suggesting that price have started a reversal. If so, the price action will be gravitating towards the previous ATH mark.

Social volume

YFI social volume - Sanbase

YFI mentions are considerably low for such a nice run up when compared to previous ones. Very surprising indeed, perhaps there are less people shilling YFI? Are most people in disbelief?

This might just indicate that the crowd is busy chasing other things and ignoring YFI at the moment, which could be a good thing as the crowd tends to come in near the top. For now, it looks like there's still enough room to grow.

Daily Active Deposits

Daily Active Deposits - Sanbase

Daily Active Deposits (DAD) saw a sudden spike recently in the run up, suggesting that YFI holders are took profits or getting ready to take profits at higher levels. YFI's price did take a tumble just after the spike in DAD.

Sell pressure is there and ready, there might be some resistance as YFI heads up but if no further strong spike in DAD appears, we might just run out of sellers.


MVRV 30D - Sanbase

Current MVRV 30D (which short term profit takers) is still look fairly alright even with such a spike in price, we are still not in the overvalued dangerzone. This suggests that the top isn't in yet and price will have room to grow further.

Going forward

The stage is set for YFI with everything that's coming up wYFI and V2, giving enough juice for speculators to work with.

Price action is very healthy and showing signs of reversal with strong bullish momentum for continuation towards attacking the previous ATH (around $43,000).

That said, sell pressure is there as Daily Active Deposits spike with each rally. YFI's price is also dependant on whether BTC behaves. If BTC tanks, it's very likely that YFI will too take a hit and continue its journey again.

For now, things are looking good for YFI.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Jan 8, 2021

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