There has been a lot of intriguing cryptocurrency market momentum today. Whereas the top markets may not move up all that much, some DeFi assets make strong moves. Yearn.Finance’s YFI has hit a new all-time high earlier today and still shows resilient momentum.
Also read: Altcoins in Focus on 11/05/2021: Reef, Cardano, Holo, BitTorrent, Wink
Very Bullish YFI Price Momentum
Although YFI has intrigued many people since its inception, the price momentum had seemingly stalled a bit in recent months. Not entirely surprising, as this asset soared to over $50,000 very quickly before noting some significant market pressure. The momentum has picked up again for this popular asset, resulting in a new all-time high being recorded several hours ago.
Currently, the all-time high YFI price sits at $77,009.27. Although the market has faced severe bearish pressure since hitting that level, the price is rising again. As values go higher in this industry, so too will the overall volatility. One thing to note is how there are only 36,666 YFI in circulation at any time, limiting the amount of “full coins” people can sell. Additionally, Yearn.finance has a market cap of roughly $2.6 billion, which doesn’t seem that steep compared to some other DeFi projects.
According to TradingView, the technical signal for YFI is still “Strong Buy” after today’s market activity. An interesting, albeit somewhat surprising development, yet it may indicate there isn’t enough selling pressure at this time. Even so, a 30% price increase in a day is often the maximum traders and speculators can expect.
Future YFI Price Outlook
Whereas many people look at the YFI price action today, it is always essential to maintain a long-term outlook. Sourcing some opinions on Twitter, it becomes apparent there are many opinions on the market. Some prefer to look at the USD value, whereas others want to increase their Bitcoin holdings.
Bitrick Jakoin may very well be the ultimate bull regarding YFI’s price action. Not only did this person expect a price increase, but he projects a future YFI value of $250.,000 and more. More importantly, this momentum is expected to materialize in the next two weeks. A near four-fold increase from the current price seems unlikely, although stranger things can happen in the cryptocurrency world.
For Crypto Mac, it is mainly about increasing the BTC stack by trading YFI against Bitcoin at opportune times. It is worth noting that Yearn.Finance’s asset has successfully overcome the gap to BTC depicted below. One has to wonder if there is any room for further growth over the coming days and weeks. A daily gain of over 31% in YFI/BTC is unusual and may not repeat itself in the future.
As is often the case with cryptocurrencies, determining future market momentum is virtually impossible. Anything can happen to any market when people least expect it. It is essential to look for why the price of this asset may be increasing before making any financial commitments.
New UNI Vault And Orion Terminal
Two exciting developments have taken place for yearn.Finance lately. Whether this is enough to influence the price to such an extent is a different matter.
The first bit of news is the launch of a new UNI yVault. As Yearn.Finance is a platform that supports yield farming and yield aggregation; supporting more DeFi assets is always a good thing. The new UNI yVault can hold 260,000 UNI tokens and has a performance fee of 20%. An exciting addition for ecosystem enthusiasts, as it confirms there is still room for future growth.
The second bit of news relates to Orion Protocol. As an aggregator of liquidity for both DEXes and centralized platforms, the team’s Orion Terminal is of keen interest to many cryptocurrency enthusiasts. Last week, the team confirmed YFI and COMP are now supported in the Terminal. An interesting addition, although the price impact of such an announcement may be negligible.
Closing Thoughts
It is evident there is a lot of market momentum for crypto assets that aren’t Bitcoin or Ethereum. That is not an indication of a new “altcoin season” kicking off, as not all assets note similar growth. However, there is a lot of excitement surrounding YFI, yet it remains unclear if the market can sustain this uptrend.
As is often the case in cryptocurrency, chasing the top is never a smart idea. Numerous assets have gone through a price surge recently before prices came crashing down again. YFI will likely meet a similar fate, regardless of how bullish the markets may be at the time of writing.
Header image by Pixabay, chart by Tradingview.com
