Yearn.finance’s YFI governance token has moved closer and closer to the $ 30,000 level in recent days and weeks, with the selling pressure here proving to be somewhat significant on multiple occasions.
All in all the price of the crypto currently caught in an attitude pattern similar to that of Bitcoin and Ethereum,
Until the larger digital assets break out – or fail – and gain clearer momentum, there’s a good chance that YFI will continue to consolidate as well.
Despite not yet breaking above $ 30,000, the technical outlook is getting better by the day.
A trader now notes that Yearn.finance’s current technical structure is strikingly reminiscent of that of Ethereum in late 2016. At this point, the crypto saw a phase of consolidation that resulted in a breakout of parabolic momentum.
If history rhymes and YFI sees a similar breakout in the coming days and weeks, chances are the cryptocurrency will enter another price discovery stage, resulting in parabolic momentum.
This momentum is likely to extend well into 2021, according to the analyst. He estimates it will see a similar price action during this time as ETH in 2017.
Yearn.finance dives higher as investors keep a close eye on $ 30,000
At the time of writing, Yearn.finance’s YFI token is trading just over 3% at its current price of $ 28,400. This is around the price it was trading at for the past week.
For a moment, it climbed as high as USD 32,000 before encountering serious resistance and falling lower.
It has the general trends of Bitcoin and Ethereum since late, making it necessary for these assets to rise to see further gains in the medium term as well.
Trader claims that YFI can reflect a bullish ETH fractal
A trader stated in a recent tweet that Yearn.finance’s YFI token could be in the process of mirroring a very bullish 2016 Ethereum fractal, suggesting that 2021 will be an incredibly positive year for the DeFi benchmark.
“Get the feeling that YFI is going to pull $ ETH in late 2016 and building insane pressure in the form of an ascending triangle and price discovery beginning in late December-early January as the real bull run is in 2021 (2017 for ETH).”
Images Courtesy of HornHairs. Source: YFIUSD on TradingView.
On which the entire medium-term market trends depend Ethereum and Bitcoin. These two digital assets have led the DeFi market, meaning the fate of Yearn.finance is at least partially in their hands.
Featured image from Unsplash. Charts from TradingView.