Bitcoin is on the rise, but the rest of the crypto space isn't following its lead this time around. Instead, many of the DeFi favorites that started the latest uptrend have fallen 10% or more in the past 24 hours. What's going on with the previously parabolic Chainlink, Yearn.Finance and Binance Coin? Here are the good, bad, and ugly when it comes to these DeFi tokens and their short-term fate.
The good thing: Yearn.Finance ready to fly when the booth can be found
Yearn.Finance is one of those magical success stories that only appear occasionally in the crypto market. The asset was launched below $ 5,000 but has since more than doubled Bitcoin's maximum price of $ 20,000.
Related reading | Binance Coin (BNB) sees a parabolic surge as the popularity of the Binance chain grows
Today it is far more expensive than the top cryptocurrency, and while BTC absorbed capital from the 10% decline in the YFI, support currently holds – both horizontally and in the mid-Bollinger band. If you stop here, Yearn.Finance could return to test the highs and some more.
Yearn.Finance Daily 10% Drop To Support & Bollinger Bands | Source: TradingView
The Bad: Support for holding Binance coins, but the storm cloud reversing signal is hanging
Binance Coin appears to be at a dead end where cops fight but only deal one potentially fatal blow to bears.
Related reading | Chainlink Monthly Finish flashes Grand Finale sell signals
An evening star pattern could have formed on the evening of the latest uptrend – which would be a strong reversal signal. However, support for Binance Coin's February 2020 high is holding up well for now, despite the 10% decline over the day and potential rejection.
Binance Coin Daily 10% Drop To Support & Evening Star | Source: TradingView
The ugly one: Chainlink trend becomes bearish in daily timeframe, trend line at risk
Chainlink's chances of holding out are less likely, according to the Average Directional Index. The tool was successfully flagged when the bullish impulse from LINKUSD shifted into high gear, and then again when it took everyone by surprise and went up even further. Now it's bearish and the trend is picking up.
Related reading | Yearn.Finance calls for support post-Coinbase listing back, new all-time highs in sight
On the way back, some support has also been lost and all that remains is an uptrend line that is in great danger of subjecting Chainlink to a deeper correction.
Chainlink Daily 10% Drop Below Support & Average Directional Index | Source: TradingView
What is driving the bearish selling pressure on these tokens – Chainlink, Yearn.Finance, and Binance Coin – could be a number of factors. For one, sentiment surrounding the swap craze has turned extremely negative and investors may be less dazzled now that the bubble is bursting.
Or maybe Bitcoin, holding a $ 10,000 support, initiated profit taking from altcoins back into BTC. Bitcoin dominance could potentially bottom out, and the recent bleeding from these DeFi darlings could just be the start of the upcoming carnage.
Featured image from DepositPhotos, Charts from TradingView