{"id":5427,"date":"2020-11-12T21:00:48","date_gmt":"2020-11-12T21:00:48","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=449642"},"modified":"2020-11-12T21:00:48","modified_gmt":"2020-11-12T21:00:48","slug":"yearn-finance-yfi-tests-key-support-as-funding-rates-flip-negative","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/yearn-finance-yfi-tests-key-support-as-funding-rates-flip-negative\/","title":{"rendered":"Yearn.finance (YFI) Tests Key Support as Funding Rates Flip Negative"},"content":{"rendered":"

Yearn.finance’s YFI token has been facing some intense selling pressure today as the focus shifts back to Bitcoin.<\/p>\n

YFI and other blue-chip DeFi tokens have posted some massive gains throughout the past few days, with the Yearn ecosystem’s token rallying from lows of $7,500 to highs of $18,000 over the course of an hour.<\/p>\n

Other tokens followed in its footsteps and saw similar gains, with this revitalizing the aggregated DeFi sector.<\/p>\n

Bitcoin’s<\/a> sideways trading within the $15,000 region that took place concurrently with this upsurge was vital for these tokens to maintain their momentum as investors began shifting their attention away from BTC and towards higher-risk assets.<\/p>\n

Today, however, BTC is once again pushing higher, with investors cycling their DeFi profits back into the benchmark cryptocurrency and placing some pressure on these altcoins.<\/p>\n

One trader is pointing to the serious support just below Yearn.finance’s current price and negative funding rates as two factors that could suggest that this ongoing selloff will be fleeting.<\/p>\n

Yearn.finance’s YFI Token Retraces from Recent Highs<\/strong> <\/strong><\/h2>\n

At the time of writing, Yearn.finance’s YFI token is trading down just under 10% at its current price of $15,600.<\/p>\n

This selloff comes close on the heels of the cryptocurrency retesting its $18,000 highs that were set directly after the rally from $7,500. The resistance here proved to be quite significant and contributed to the ongoing downswing.<\/p>\n

Bitcoin’s break above $16,000 also appears to be hampering the price action seen by Yearn.finance’s YFI and other tokens, as investors are redirecting their attention back to the benchmark cryptocurrency.<\/p>\n

Until BTC<\/a> stabilizes and enters another consolidation phase, there’s a strong possibility that smaller tokens will continue facing larger inflows of sell-side pressure.<\/p>\n

Analyst Eyes YFI Rebound as Funding Flips Negative<\/strong><\/h2>\n

While sharing his thoughts on where the cryptocurrency might trend in the near-term, one analyst explained<\/a> that Yearn.finance’s YFI is seeing funding flip negative despite it entering into a support zone throughout the $15,000 region.<\/p>\n

As such, it may soon see a sharp rebound.<\/p>\n

\n

“Oh… So YFI is testing support and funding is going negative across the board? Allow me,” he said while pointing to the below chart.<\/p>\n<\/blockquote>\n

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

Image Courtesy of Cantering Clark. Source: YFIUSD on TradingView<\/a>.<\/pre>\n
Bitcoin’s price action will likely hold significant influence over that of Yearn.finance and other DeFi tokens<\/a>. If the cryptocurrency stabilizes, then this ongoing DeFi selloff could prove to be short-lived.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/a>.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Yearn.finance’s YFI token has been facing some intense selling pressure today as the focus shifts back to Bitcoin. YFI and other…<\/p>\n","protected":false},"author":1,"featured_media":5428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[126,188,127,123],"class_list":["post-5427","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\/5427"}],"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=5427"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/5428"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=5427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=5427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=5427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}