Assets covered: YFI

Metrics used: Daily Active Deposits, Supply on exchanges, Active Addresses, Transaction volume, MVRV, Network Profit/Loss, Holders Distribution

Summary: A slight bullish divergence seems to be forming on YFI

We are seeing an increased chatter on YFI lately. Seems to be some positive divergencies happening. Basically a similar setup what we've had with REN bottoming a while ago.

Price reaching lowest levels since August and the same time, what we see is a spike in

Daily Active Deposits:

It means we are seeing a little bit of sell offs here.

Supply on exchanges:

A little bit of pain seems to be emerging at the charts.

On the other hand we do see an uptick in

Active Addresses:

So a bullish divergence between price and active addresses is forming.

Transaction Volume:

And the transaction volume is quite high, around $100M yesterday.

MVRV (60d):

Network Profit/Loss:

Signs of slight selling at a loss. Still not huge, but we are seeing a little bit of pain once again. Actually quite a bit of pain recently overall. On average people seem to be exiting at a loss.

Holders Distribution:

The last day brought 5 new whales into YFI ecosystem. All holding from $1M to $10M in YFI.

Moreover, we have a couple of solid players onboarded a few of days ago:

This is solid. Although all in a loss.

Summing up

YFI is looking interesting for a slight bounce back. Much like REN before. Holders selling after YFI dropped below 12K, feeling a little bit of pain. In the meanwhile the active addresses are growing. And have been growing for few days. Also MVRV is very low, indicating YFI is oversold. Or dying. So If you believe in project, if you trust it - might be good to consider.

We could say same as with REN: Adjust it to your risk and investing profile. Significant position size? You can still wait. There might be lower lows. If you have a smaller portfolio, and able to take more risk - perhaps the time is now.

But...

One thing confused the cards. YFI founder, Andre Cronje, released his next project token hours ago - Keep3rV1 (KP3R). Totally not connected to YFI. And of course it attracted bees since first minutes on Uniswap:

How would you like 14,800% gains in one single day? ×148! This is what next Andre's token is capable of. No wonder traders start exiting 'old' YFI and jumping in KP3R. Totally not bullish for YFI.

Well, big players can make mistakes sitting in drowning YFI. And may be they will be winners at the end. Cause right now this is the crowd behaviour: switching to a sweet new promising token from legendary Andre.

But this is another story.

Stay tuned.