How the crypto market missed the 142% rally of the most expensive token after Bitcoin
- Yearn Finance price noted an increase from $5,957 to $14,452 in the span of just ten days.
- YFI emerged as the biggest gainer in the market in the past week, second only to Celestia’s 172% rise.
- The anticipation of Yearn V3’s launch announcement drove the rally, but the lack of volume shows that the participation was at a low.
Yearn Finance price shot up in the last couple of days, making it one of the biggest gainers of the recent short-term bull run. Despite being the second most expensive cryptocurrency in the world and the most expensive altcoin, the lack of utility that the token serves is one of the biggest reasons why it has a very low volume.
However, by the looks of it, there might be some room before a reversal begins.
Yearn Finance price rise slows but does not stop
Yearn Finance price is trading at $14,457 and has come to be one of the biggest gainers of the past week. Rising by 142% in the past ten days, the altcoin has surprised investors as well as the market. This is the first major rally noted by YFI since July 2022, making it a surprise rally. The bigger surprise is that despite holding a value of $14,457, the coin did not see much demand, which is evident by the 24-hour trading volume of $362 million.
However, investors have not completely lost their shot at still scraping some profits from the rally. The altcoin is showing signs of potential for a further increase despite slowing down over the past 24 hours.
The Moving Average Convergence Divergence (MACD) indicator shows rising green bars with no sign of a bearish crossover at the horizon. A reversal can be expected when the green bars start receding, which would be a hint of waning bullishness.
Until then, Year Finance price can continue its rally, provided it can cement the $14,132 line as a support floor. This is crucial in ascertaining a rise toward the psychological level of $15,000 and beyond to tag the resistance at $16,387.
YFI/USD 1-day chart
But if the bullishness saturates and an overheated market cools down, some decline might be possible. Furthered by likely profit booking by investors to lock in the recent gains, YFI could lose the support of $14,132 and fall to $12,200. Falling through this support level would invalidate the bullishness, pushing the altcoin toward $10,000 and undoing the rally in the process.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
