Sep 11, 2020 15:17 UTC
Sep 11, 2020 at 15:17 UTC
An instantaneous pump that pushed popular decentralized finance token, YFI, up by 23 per cent, has entered a bull trap.
The Yearn Finance governance cryptocurrency fell 10 per cent this Friday from its intraday top at $36,043. Its plunge seemed like a part of formal downside correction that typically follows value rallies. Traders hesitantly bought spot YFI at its session low, only to sell the token later at an excellent high.
Whereas the pump-and-dump was purely technical, what transpired the YFI price rally stood firm. Coinbase Pro, one of the world’s top crypto firms, broadcasted Thursday that it is going to list YFI-enabled trading pairs on its dais from next week.
“On Monday, September 14, we will begin accepting inbound transmissions of YFI to Coinbase Pro,” the platform publicized. “Trading will begin on or later 9 A.M. Pacific Time (PT) Tuesday, September 15, if fluidity conditions are met.
In response, the DeFi token hopped from $29,000 to $35,000 within a few hours of Trading. Listing on Coinbase Pro characteristically leaves cryptocurrencies under a bullish spell. It is since the platform opens them to a market with better fiat liquidity, which comprises smooth conversions between the tokens & national currencies like the US dollar, euro, & pound.
A record on Coinbase also quasi-certify cryptocurrencies as unpretentious in the eyes of the US traders. That serves as a big plus, particularly for emerging tokens like YFI that have limited exposure to the mainstream finance market.”
YFI Procedural Viewpoint
Theoretically, YFI/USD was testing $31,993 as support & 35,070 as resistance. The pair, for the time being, hints to amalgamate sideways withing this $4,000 range. Meanwhile, prospects of Coinbase listing could help YFI sustain above the support level.
That might permit traders to put an extended position to $35,000 for a short-term profit, providing they also maintain a stop-loss target below the point of their entry. Meanwhile, a successful break above $35,000 would extend the upside target near $38,990 (~$40,000). On the other hand, if a downside sentimentality across the cryptocurrency market persists, then traders may use their gains in the YFI market to offset losses somewhere else. Those volumes to an extended bearish correction below the $35,000-support. Should that happen, the first downside target traders may watch sits nearby $29,831. A further breakdown and traders could extend their short position to the green wave in the chart above. That is the 20-period moving average curve.