– Yearn Finance price faces an immense sell-off, knocking the YFI token down by 40%.
– Profit-taking in altcoins is likely going to trigger double-digit losses for many altcoins.
– Bitcoin price continues to move sideways around the $36,000 region with no directional bias.
Yearn Finance (YFI) price has dropped a massive 43% in the last five hours and shows no signs of stopping.This move comes on the weekend when the trading volume is generally low and manipulation is relatively easy.
Yearn Finance’s historic rise and dramatic crash
Yearh Finance’s YFI token rallied a whopping 167% in just nine days between November 8 and 17.This impressive rally set a local top at $15,955 on November 17 and triggered its dramatic crash that undid nearly five days of gains in just five hours.
Here are the takeaways of this 43% crash.
– The five-hour selling spree caused YFI longs worth $2.1 million to face liquidations, according to data from CoinGlass.
– A closer look at the futures data shows a 40% increase in open interest, suggesting that this move could have been triggered due to the opening of short positions.
– Interestingly, $372,143 worth of shorts were also liquidated and could be considered FOMO bears that piled on at the last minute and at the end of the 43% crash.
YFI/USDT 1-hour chart
Altcoins likely to face YFI’s fate in the upcoming week
The run-up in crypto prices over the last few weeks was mainly due to the ETF approval.To be specific, the ETF approval window, extending from November 13 to 17, was why most altcoins squeezed higher in the last week.But since the SEC has clearly delayed this decision, the approval is likely to come in January 2024.
Hence, investors are likely to book-profits, which could trigger a market-wide correction.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.
FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.
Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.
FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Axie Infinity, YGG and Sandbox prices could rally with the upcoming Web3 Games Summit
The Yield Guild Games Web3 Summit will be held on November 18, fueling bullish outlook among gaming token holders.Market participants gear up for Axie Infinity, Yield Guild Games and Sandbox co-founders to speak at the Summit.
More Cryptocurrencies News
Bitcoin Weekly Forecast: ETF delay and weekly swing failure could crash BTC to $30,000
After the US Securities and Exchange Commission (SEC) announced a delay in their ETF decision, Bitcoin (BTC) price saw a quick uptick, which did not make sense.Currently, BTC is hovering below the $38,000 level, leaving investors guessing its next move.
More Bitcoin News
SushiSwap partnership for native Bitcoin swaps fails to trigger SUSHI rally
Sushi has partnered with ZetaChain to explore native Bitcoin swaps for users across 30 blockchain networks.
Experts believe Bitcoin users could gain exposure to DeFi in a native manner through the integration.
More SushiSwap News
WisdomTree revises spot BTC ETF application, in signs that talks with SEC continue
Asset management company WisdomTree submitted a revision of its spot Bitcoin ETF application on Thursday.The filing is part of the application process and signals WisdomTree is in talks with the SEC, Bloomberg analyst James Seyffart said.
More Cryptocurrencies News
Bitcoin: ETF delay and weekly swing failure could crash BTC to $30,000
After the US Securities and Exchange Commission (SEC) announced a delay in their ETF decision, Bitcoin (BTC) price saw a quick uptick, which did not make sense.Currently, BTC is hovering below the $38,000 level, leaving investors guessing its next move.
Read full analysis.
