Yearn.Finance Experiences Bullish Surge Amid Altcoin Awakening; Faces Allegations of Price Manipulation

The post Yearn.Finance Experiences Bullish Surge Amid Altcoin Awakening; Faces Allegations of Price Manipulation appeared first on Coinpedia Fintech News

In the dynamic world of decentralized finance (DeFi), Yearn.finance (YFI) has recently garnered significant attention due to its impressive performance in the yield farming sector. The medium-capped altcoin, with a total value locked (TVL) of approximately $332 million, has witnessed a remarkable 75% increase over the past four weeks. As of the early hours of Monday’s London session, YFI was trading around $8,952, indicating a bullish trend amid an altcoin awakening.

Concerns Over Market Manipulation: Lookonchain’s Analysis

Despite the positive market outlook, recent on-chain data analyses have raised concerns about the potential price manipulation of YFI. Lookonchain, an on-chain intelligence firm, has reported signs of manipulation, mainly through the open interest (OI) market on the dYdX cryptocurrency exchange. This suspicion is further intensified by the activities of a crypto whale, previously noted for manipulating the price of Sushi (SUSHI), who is now believed to be influencing YFI’s price on dYdX.

According to Antonio, the founder of dYdX, there was a significant spike in YFI’s open interest – from around $0.8 million to over $67 million. This surge is attributed to the actions of a single whale, supposedly to impact the company’s insurance pool.

YFI’s Technical Outlook: A Golden Cross and Elliott Wave Principle

Amid these concerns, YFI’s price action continues to show bullish trends, supported by key technical indicators. A notable development is the formation of a daily golden cross between the 50 and 200 Moving Averages (MA), a sign often interpreted as bullish by traders. However, YFI has experienced a 37% decline since November 17, indicating that the altcoin might not have much room for further corrections if it aims to maintain its bullish trajectory in the coming weeks.

The daily Relative Strength Index (RSI) is retesting the region around 50, a crucial level for YFI bulls to defend. From the Elliott wave principle perspective, YFI is poised to enter its third wave after the completion of the ongoing correction.

Looking Ahead: The Future of YFI

The current situation surrounding YFI presents a mix of optimism and caution. While the altcoin shows strong technical fundamentals supporting its growth, the allegations of market manipulation overshadow its recent performance. Investors and market observers will closely monitor how these factors influence YFI’s future price action.