Bitcoin is surging but the rest of the crypto space isn’t following its lead this time around. Instead, many of the DeFi darlings that led the last bullish impulse, have fallen 10% or more in the last 24 hours. What’s going on with the previously parabolic Chainlink, Yearn.Finance, and Binance Coin? Here’s the good, the bad, and the ugly when it comes to these DeFi tokens and their short-term fate.
The Good: Yearn.Finance Ready To Fly If Footing Can Be Found
Yearn.Finance is one of those magical success stories that comes one only every so often in the crypto market. The asset launched sub-$5,000 but has since more than doubled Bitcoin’s peak price of $20,000.
Today, it remains far more expensive than the top cryptocurrency, and while BTC did absorb capital from the 10% YFI drop, support is currently holding – both horizontally and at the middle Bollinger Band. Holding here could send Yearn.Finance back to retest highs and then some.
The Bad: Binance Coin Holding Support, But Reversal Signal Storm Cloud Hangs
Binance Coin appears to be at an impasse, where bulls are putting up a fight but bears just dealt a potentially deadly blow.
An evening star pattern may have formed at the top of the recent uptrend – which would be a strong reversal signal. However, support from the February 2020 high in Binance Coin is currently holding up well, despite the 10% intraday drop and potential rejection.