As we said earlier in previous posts, we are now betting on alts and are slowly opening speculative positions with stops. Some positions have already been successfully closed after reaching target prices.
In our opinion, a technical rebound is on the cards for alts. Of course, this does not apply to the entire range of cryptocurrencies, but only to those who have reached a potential local bottom, having hit their strongest support levels.
🎁 Today we decided to share a similar idea publicly so that you understand our current logic for opening speculative positions.
In the picture you can see the chart of the coin$YFI
Yearn.finance is a protocol that provides the opportunity to use decentralized financial services (DeFi) - lending, earning interest, trading.
YFI is an ERC-20 token used to govern protocols within the Yearn Finance DeFi platform.
In the simplest possible terms, this project allows you to maximize your income by storing your stablecoins and a number of cryptocurrencies within the protocol.
Yearn.finance takes the initial funds and distributes them to the pools with the highest returns. Typically these pools are located inside other projects: COMP, AAVE and DYDX.
🔼 Fundamentally, the YFI coin should grow in the medium term, as many investors are sitting in cash and waiting for cheaper prices. And in order for the money to continue to work, they, in theory, enter funds into the Yearn.finance protocol, where they receive a certain percentage for storing their funds within the protocol.
Another fundamental advantage of this coin is that the token issue is only 33,000 YFI. Because of this, we have such a high cost of this asset.
🕯 Technical analysis
The coin has been trading near its last support level of $5,000 for a whole year, and it was at these levels that it was listed on exchanges.
The indicators are heavily oversold and have formed a bullish divergence.
Globally, the coin is forming a massive bullish Wedge. Locally, the price is actively pushing towards the downward trend and literally within 1-2 weeks a breakdown should occur.
The stop obviously needs to be placed under the support level. And the growth goals are as follows:
1️⃣Short-term - $6328 and $6828
2️⃣Medium-term - $7600 and $9400
In general, it makes sense to take a coin without a stop, but then control the risks with the size of the position.
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