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Analyst: If Yearn.finance (YFI) Surmounts $16,000, It Could Start a New Uptrend

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Yearn.finance has seen a decent rebound from its recent lows set just a few days ago.

Its ongoing upswing is coming about as Bitcoin and Ethereum consolidate, which indicates that it may be breaking its recent downtrend and beginning to navigate higher as many altcoins start catching some tailwinds created by BTC and ETH’s recent upswing.

There are still some underlying problems that are hampering YFI’s growth, with the Yearn ecosystem currently being caught within a vicious cycle limiting how much value is captured by the token.

Furthermore, the founder’s risk that has been priced into YFI may also be limiting its near-term upside, as Yearn founder Andre Cronje has been playing with multiple experimental projects that have cost speculators significant sums of capital.

There is one key technical level that, if broken, could send it rocketing significantly higher in the coming few weeks.

A further rejection at this level could spell trouble for its near-term outlook and lead to further downside. One analyst is even pointing to $6,000 as a potential downside target.

Yearn.finance Struggles to Gain Momentum Despite Bullish Market

Yearn.finance’s YFI token is currently trading up 5% at its current price of $14,500. This marks a notable surge from its multi-day lows of $13,000 set just a few days ago.

It is important to note that it is still caught within a consolidation phase, as it has been trading around its current price for the past couple of weeks.

Until it breaks above $16,000 and begins marching back up towards $20,000, its technical outlook still slightly favors bears.

Furthermore, the lack of attractive yields on the yVaults leads less value to be captured by YFI, which is hampering its technical strength.

Analyst: YFI Must Break $16,000 to See Further Momentum

While sharing his thoughts on the Yearn.finance token’s technical outlook, one analyst explained that $16,000 is a key level that YFI must overcome in the near-term.

He also notes that a breakdown before here could be dire, putting forth a $6,000 target on the chart he offers below.

“Another diagonal for YFI. $16k is still the level to overcome in order to see strength for continuation. 2 failed/awkward breaks of diagonals previously. Let’s see how we do today.”

Yearn.finance YFI

Image Courtesy of Cold Blooded Shiller. Source: YFIUSD on TradingView.

Yearn.finance’s near-term technical strength may also reflect that of the aggregated DeFi sector, which means that inflows of capital into beta assets following Bitcoin’s surge could provide it with a boost.

Featured image from Unsplash.
Charts from TradingView.

Source: https://www.newsbtc.com/analysis/yfi/analyst-if-yearn-finance-yfi-surmounts-16000-it-could-start-a-new-uptrend/

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Ukraine’s Draft Crypto Bill Passes First Parliamentary Hearing

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Ukraine’s legislative effort to bring in cryptocurrency regulation has had a successful first hearing in the nation’s parliament, the Verkhovna Rada.

After being discussed and given the initial thumbs up by lawmakers Wednesday, the Draft Bill on Virtual Assets now has two more hearings before it becomes law. 

If that happens, Ukraine will join the still-short list of nations that have put in place dedicated laws regulating cryptocurrencies. The country was named a global leader in crypto adoption by blockchain analytics firm Chainalysis in September, as citizens actively using crypto for savings, investment and cross-border trade. 

The parliamentary hearing was not completely smooth for the bill: some lawmakers decried it as considering things too far from the problems besetting Ukrainian economy. However, at the end, the document still received 229 “yes” votes out of 340 and passed this first stage of the legislative process. 

The bill defines virtual assets as “a set of data in electronic form,” which “can be an independent object of civil transactions, as well as certify property or non-property rights.” The law suggests not considering virtual assets as legal tender in Ukraine.

The document singles out virtual assets backed by goods or services, suggesting that they must be taken out of the market in cases where the backing ceases to exist. 

The ownership of virtual assets is considered as being the entity holding the private keys, unless they are held with a custodian, forfeited by the court decision or acquired illegally. 

Virtual assets would be regulated by Ukraine’s Ministry of the Digital Transformation, and crypto service providers must register to be able to operate in the nation. Firms must provide information on ownership structure and beneficiaries, as well as ensure they don’t facilitate money laundering and that they are diligently protecting users’ personal data. 

The Ukrainian crypto community sometimes finds itself at a disadvantage on global trading platforms. For example, in September, Bittrex temporarily stopped serving users from Ukraine, along with Belarus, Burundi, Mali, Myanmar, Nicaragua and Panama. The exchange did not give specific reasons, citing only “the current regulatory environment” in the affected jurisdictions.

The Ministry of the Digital Transformation believes introducing a clear regulatory regime would encourage crypto businesses to work with Ukrainians and open shop in the country. The ministry drafted the bill in collaboration with Ukraine’s crypto community, although some members are vocally opposing the very idea of crypto regulation. 

Source: https://www.coindesk.com/ukraine-parliament-draft-cryptocurrency-bill-law

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Tether (USDT) is nearing $20 billion market valuation

TL:DR Breakdown: US dollar-backed stablecoin, Tether, is nearing a market cap of $20 billion. The stablecoin market cap has been on growth for the past two months. The market capitalization of the fourth-largest digital currency, Tether (USDT), has been on the rise since the beginning of the crypto market in September. According to data provided […]

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TL:DR Breakdown:

  • US dollar-backed stablecoin, Tether, is nearing a market cap of $20 billion.
  • The stablecoin market cap has been on growth for the past two months.

The market capitalization of the fourth-largest digital currency, Tether (USDT), has been on the rise since the beginning of the crypto market in September. According to data provided by Skew, a crypto on-chain analytics platform, the stablecoin market valuation is nearing the $20 billion mark. On this note, the US dollar-backed crypto is still leading the stablecoin market with a huge dominance rate. 

The second-largest stablecoin USD Coin (USDC), has about $2.97 valuation on Coinmarketcap.

Tether Posts More Market Cap Growth

On Coinmarketcap, the leading stablecoin has a market valuation of around $19.413 billion and a 24 hours trading volume of $89.885 billion. CoinGecko posted a market $19.398 billion and $65.629 billion 24hrs volume, while Messari posted a $19.97 billion capitalization and trading volume of $9.449 billion. Notably, USDT’s market valuation has been growing steadily since September, as Skew shared on Twitter today.

To better understand the growth, the stablecoin had a valuation of around $10.2 billion on Messari, and $9.1 billion on Coinmarketcap, back in July. Meanwhile, it’s worth noting that the company behind the digital currency, Tether inc., has been minting a significant amount of USDT in recent days. 

There has been a lot of controversy around the stablecoin. The company says each USDT issued is backed by a US dollar; however, this has been largely questioned by many people in the digital currency space. 

USDT kept dominating

Despite the controversies around USDT’s backing, the stablecoin remains the most-traded and leading currency-back cryptocurrency. The second-leading stablecoin by market capitalization, USDC, sees a valuation of $2.98 billion on Messari, $2.969 billion on CoinGecko, and $2.97 on Coinmarketcap. 

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SushiSwap Hits Multi-Week High on High Profile Synergies; What’s Next?

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SushiSwap’s governance token SUSHI continued its rally upward on Wednesday as its price per unit breached the $2-resistance level.

The SUSHI/USD exchange rate rose 13.15 percent ahead of the New York opening bell, trading at $2.18. The latest gains came as a part of a broader upside move that brought SUSHI’s week-to-date returns up by 61 percent and its quarter profits up by 74 percent.

Partnerships

Meanwhile, the reason traders boarded the SUSHI uptrend this week is a flurry of SushiSwap’s partnerships with high-profile decentralized finance projects. A decentralized exchange itself, it formed synergies with yield aggregator Yearn Finance, smart contract-based job marketplace KP3R, and DeFi services platform DeriSwap.

All the SushiSwap’s partnership platforms have one founder: Andre Cronje.

The celebrated developer stated in a blog post on Tuesday that Yearn Finance would “participate in SushiSwap governance and add to its treasury some SUSHI.” He further promised grants for developers who would build tools for the decentralized exchange.

Josh Rager, a cryptocurrency analyst, said the partnerships allowed traders to raise their bids for SUSHI tokens. As a result, the price rose exponentially in the previous weeks in hopes that SushiSwap would grow into a full-fledged DeFi ecosystem.

“I would love to see SUSHI price eventually hit the upper $4’s target,” said Mr. Rager.

SUSHI Technical Setup

Technically, SUSHI showed signs of either correcting lower or consolidating sideways as its momentum oscillator alerts about its “overbought” status.

SUSHI, SUSHIUSD, SUSHIBTC, cryptocurrency
SushiSwap breaks above crucial Fib resistance level. Source: SUSHIUSD on TradingView.com
SushiSwap breaks above crucial Fib resistance level. Source: SUSHIUSD on TradingView.com

But despite a short-term correction woe, SUSHI looks stronger above $2, a Fibonacci retracement level the token broke on Wednesday. A push above the level now allows traders to open a slightly risky long position towards $2.9-3. SushiSwap’s fundamentals, as discussed above, support the upside call.

Meanwhile, should profit-taking sentiment clouds the market, SUSHI risks falling back inside its previous Ascending Channel range, followed by a retest of the area’s lower trendline. The level also coincides with the 20-day exponential moving average wave (green).

If the sell-off continues, then the price may fall to as low as the 50-day simple moving average curve (red).

Source: https://www.newsbtc.com/news/defi/sushiswap-sushi-expects-to-rise-by-another-350-analyst-assertssush/

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