Why is Yearn.Finance (YFI) crypto dipping today?

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Why is Yearn.Finance (YFI) crypto dipping today?

 Why is Yearn.Finance (YFI) crypto dipping today?
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Highlights

  • As a DeFi aggregator, the YFI crypto allows the users to earn interest on crypto assets which use smart contract platforms such as Ethereum.
  • On Tuesday as well, the YFI crypto was trailing by 3.93% with a volume loss of 21.23% at 6:30 AM (GMT +1), according to CoinMarketCap.
  • Yearn.Finance on Tuesday was trading at US$11,056.70 with a 24-hour trading volume of US$5,33,21,514, according to CoinMarketCap.

It seems the bearish sentiments may be back in the crypto market. With the overall market cap on 16 August being down by over 3%, its effect was quite evident on leading cryptos as well. The overall crypto market cap stood at US$1.15 trillion with a 24-hour volume of US$75.92 billion on Tuesday. 

One of the cryptos which have been under the pump is the Yearn.Finance crypto (YFI). In fact, the Yearn Finance crypto trailing for some time now as it was down by 5.2% over the fortnight and 3.4% over the past week respectively. On Tuesday as well, the YFI crypto was trailing by 3.93% with a volume loss of 21.23% at 6:30 AM (GMT +1), according to CoinMarketCap.    

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As a DeFi aggregator, the YFI crypto allows the users to earn interest on crypto assets which use smart contract platforms such as Ethereum. YFI crypto has value as it allows users to lock their tokens in the protocol and its contracts running on Balancer and Curve.  

Reason for YFI crypto’s slide? 

The exact reason for YFI crypto’s dip is still unclear. But the performance of late does showcase the volatility in the token. The token, in fact, a couple of weeks back had witnessed a breakout from the 172-day resistance line earlier this month. 

In fact, the recent performance has resulted in the token’s RSI dipping to 58.01 in the intra-day trading session. Even though it is still garnering decent interest, the dip has affected the volumes as well. 

Image credit: Trading View

Even the MACD is showcasing a similar trend as the upside momentum that which YFI token was showcasing last month or so has subsided, and now the bears seem to be in control as per the intraday charts. 

The signal line has managed to climb above the MACD line suggesting bearish sentiment in the token. Courtesy of the falls that it had witnessed of late, the support now stands at US$10,091 with resistance at US$12,087. 

YFI’s Price Performance

Yearn.Finance on Tuesday was trading at US$11,056.70 with a 24-hour trading volume of US$5,33,21,514, according to CoinMarketCap. YFI crypto boasted of a live market cap of US $40,50,92,187 with 36,638 YFI coins in circulation

With the market behaving in a volatile manner, investors must ensure that they do the market research properly and study the trends before making any investment decisions. Any decision taken without it may lead to severe financial losses. 

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