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In summary:
- Arthur Hayes has boldly predicted that Yearn Finance (YFI) will hit $100,000
- He made his prediction twice after YFI broke $27k and $32k
- YFI’s price is following a parabolic trajectory with no clear indication of where the top will be
The Co-Founder and CEO of Bitmex, Arthur Hayes, has made a bold prediction that the price of Yearn Finance (YFI) will eventually hit $100,000. Mr. Hayes made this prediction not once, but on two occasions in the last 24 hours. The first time was when Yearn Finance broke $27,000 with the second being when YFI crossed $32,000. Mr. Hayes made the prediction via the following two tweets.
1 $YFI = $100,000 pic.twitter.com/KjW26SXfmc
— Arthur Hayes (@CryptoHayes) August 29, 2020
I don’t think y’all heard me. 1 $YFI = $100,000. pic.twitter.com/IGirAovezB
— Arthur Hayes (@CryptoHayes) August 30, 2020
How Far Can the Price of Yearn Finance Go?
Yearn Finance (YFI) has taken ChainLink’s place in the crypto-verse in the sense that finding a local top has become a guessing game. For the better part of August, LINK’s price kept traders and investors on their feet wondering if it was time to take profits or start shorting the digital asset.
To get a feel of what the future holds for Yearn Finance (YFI), the 4-hour YFI/USDT chart will be used.
From the 4-hour chart, the following can be observed.
- Poloniex seems to be the only crypto-exchange with a long enough price history of Yearn Finance (YFI)
- YFI’s data on Poloniex goes back to as far as 21st July providing the first warning sign that YFI is very new
- When listed, YFI opened trading at $931 on Poloniex
- YFI’s value currently stands at $33,100 signifying a 3,455% increment in value in roughly a month
- 4-hour MACD is overextended pointing towards the possibility of a pullback or sideways
- The 4-hour MFI is high at 100.52 further hinting towards a pullback
- Yearn Finance’s price is above all the moving averages: 50 MA, 100 MA and 200 MA
- Short term support zones can be found at previous all-time highs: $27,000, $23,400, $19,400
Conclusion
Yearn Finance (YFI) has once again posted an all-time high value of $39,000 – Poloniex rate. This is after it posted two previous peak values of $27,154 and $32,843 within the same 24-hour time period. The impressive momentum of Yearn Finance has resulted in the Co-Founder and CEO of Bitmex, Arthur Hayes, predicting that YFI can go as high as $100,000.
Further checking the charts, Yearn Finance is clearly in a parabolic move and there is no telling where the exact top will be. Given the popularity of DeFi in the past 3 months, Mr. Hayes prediction might just play out.
However, traders and investors considering longing Yearn Finance at its current levels should do so knowing they stand to lose their capital should YFI correct hard. The same applies to short sellers. The FOMO surrounding YFI might just ruin that perfect set up to short to a previous all-time high.
As with all analyses of DeFi tokens such as Yearn Finance, traders and investors are requested to use adequate stop losses and low leverage when trading YFI on the various derivatives platforms.