{"id":5288,"date":"2020-10-31T22:00:48","date_gmt":"2020-10-31T22:00:48","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=448457"},"modified":"2020-10-31T22:00:48","modified_gmt":"2020-10-31T22:00:48","slug":"yearn-finance-yfi-open-interest-hits-an-all-time-high-as-selloff-continues","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/yearn-finance-yfi-open-interest-hits-an-all-time-high-as-selloff-continues\/","title":{"rendered":"Yearn.finance (YFI) Open Interest Hits an All-Time High as Selloff Continues"},"content":{"rendered":"

Yearn.finance’s YFI token failed to gain any momentum following yesterday’s sharp rebound following a brief dip below $10,000.<\/p>\n

The cryptocurrency is now on the cusp of once again breaking below this level, with the immense selling pressure coming about as open interest for the token reaches an all-time high.<\/p>\n

Although the sell-side of YFI’s order books<\/a> are rather thin at the moment, a lack of any intense inflows of capital has perpetuated its recent technical weakness – which is showing few signs of slowing down any time soon.<\/p>\n

The governance token’s price is also dipping in tandem with the implementation of a new proposal to redirect the ecosystem’s income towards YFI token buybacks, which is widely expected to boost its price.<\/p>\n

Investors don’t seem to care too much, however, as the selling pressure placed on the token has been relentless.<\/p>\n

Unless it traps short positions and sees a more sustainable rally in the near-term, there’s a decent chance that significantly further downside is imminent.<\/p>\n

Yearn.finance (YFI) Struggles to Gain Momentum as Descent Continues<\/strong><\/h2>\n

At the time of writing, Yearn.finance’s governance token<\/a> is trading down over 6% at its current price of $10,370.<\/p>\n

Yesterday, the crypto rallied to highs of $12,000 following a dip to lows of $9,600 set just a few days ago.<\/p>\n

This decline marked capitulation, and the subsequent rebound made many analysts suspect that this was a short squeeze that could help mark these lows as a long-term bottom.<\/p>\n

However, the decline seen throughout the past day signals that this selloff is not over and that further downside may be seen in the days and weeks ahead.<\/p>\n

YFI Open Interest Hits All-Time Highs as Traders Bet on Volatility<\/strong><\/h2>\n

Open interest for Yearn.finance’s YFI token<\/a> is now at an all-time high, which indicates that an explosive move could be right around the corner.<\/p>\n

Prominent investor Andrew Kang spoke about this in a recent tweet<\/a>, explaining that OI is surging following the move towards $15,000 that cleared the upside liquidity.<\/p>\n

\n

“OI on YFI at new ATHs, surpassing first capitulation at 12k earlier this month. 12k-15k liquidity capitulated into high volume at 10ks (same as first capitulation into 12ks. Sell side orderbooks thin. What happens to shorts on a bounce up?”<\/p>\n<\/blockquote>\n

\"Yearn.finance<\/p>\n

Image Courtesy of Andrew Kang. Source: BTCUSD on TradingView.<\/a><\/pre>\n
Although he seems to believe that this indicates a move higher is imminent, the lack of any short squeeze during yesterday’s relief rally seems to point to immense underlying weakness amongst bulls.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/a>.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Yearn.finance’s YFI token failed to gain any momentum following yesterday’s sharp rebound following a brief dip below $10,000. The cryptocurrency is…<\/p>\n","protected":false},"author":1,"featured_media":5289,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[126,188,127,123],"class_list":["post-5288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-yfi","tag-yfibtc","tag-yfiusd","tag-yfiusdt"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5288"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=5288"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/5289"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=5288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=5288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=5288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}