Yearn.finance’s YFI token has made massive gains from the multi-month low of $ 7,500 set a few weeks ago.
The strength it has expressed since drifting towards these lows has been impressive, with bulls laying a strong foundation of support in the USD 20,000 region. It has yet to break below this level, but is still struggling to break through the selling pressure of around $ 30,000.
Where it develops over the medium term may largely, if not entirely, depend on the sustained response to the selling pressure here.
Despite the bullishness seen by both ETH and Bitcoin, DeFi altcoins like YFI haven’t seen tremendous momentum yet.
The DeFi sector may be one of the last to recover, with investors focusing on Bitcoin and major altcoins in recent days and weeks.
A trader now notes that Yearn.finance’s governance token is currently building a strong support base, just below the current price level. Because of this, it could see remarkable momentum in the coming days.
As for the first trend, he points to USD 29,300, noting that selling pressure on his range highs could be the first hurdle to overcome.
Yearn.finance’s YFI is consolidating despite market-wide upward trend
Yearn.finance’s consolidation trend was quite surprising as it comes as the rest of the crypto market sees massive upward momentum.
It is also symbolic of the performance of the entire DeFi market as most of the blue chip tokens in this sector have not yet seen tremendous momentum.
Where it is in the medium term may largely – if not completely – depend on Ethereum price promotionas ETH has largely been the guiding light for DeFi altcoins in recent months.
This basis of support can give YFI a boost
A merchant explained in a recent tweet that he follows Yearn.finance’s continued response to its strong support base at around $ 27,000.
He notes that continued trading above this level could allow it to test his range highs at over $ 29,000 in the near term.
YFI: Here is the ‘story’ of the price action as I like to call it (in the bullish scenario I currently see it as). Lose the white box S / R flip and it just goes back to the range I expect. “
Image Courtesy of Chase_NL. Source: BTCUSD on TradingView.
It remains unclear how long the DeFi sector will underperform against Bitcoin and Ethereum, but as Yearn.finance’s YFI has become a benchmark for the space, it will likely be one of the first major DeFi Coins to move.
Featured image from Unsplash. Charts from TradingView.