Yearn.finance’s price has seen some turbulence in the weeks following its intense rally to all-time highs of over $40,000. The governance token for the Yearn ecosystem – YFI – has been largely consolidating in the time since, with both buyers and sellers being unable to spark any sustained trend.
This may be due to YFI being viewed – and traded – as an index bet for the entire DeFi sector, which has seen stagnating growth in recent weeks. As such, the token’s bout of sideways trading may persist until the aggregated market can start moving higher.
That said, from a technical perspective, the Yearn governance token has been shaping up quite nicely.
One analyst is noting that its latest 3-day candle close was incredibly bullish and has opened the gates for it to see further parabolic upside in the days and weeks ahead.
Yearn.finance’s Governance Token Rebounds from Recent Selloff
At the time of writing, Yearn.finance’s governance is trading down marginally at its current price of $31,800.
This marks a notable upswing from daily lows of under $29,000 set during an intense selloff overnight, which came about after its price peaked at highs of $34,000.
The decline occurred in tandem to that seen by Bitcoin and Ethereum, but the intensity of the recovery does seem to indicate that bulls are underpinned by serious strength.
$34,000 may continue acting as a resistance level for the foreseeable future. If bulls can surmount this price region, they may then be able to push its price up towards its all-time highs of over $40,000.
The strong bedrock support to watch sits at $20,000. As long as this level continues holding strong, there’s a possibility of it eventually seeing further upside.
Analyst: YFI Poised to Go Parabolic… Again…
One trader explained in a recent tweet that Yearn.finance’s previous 3-day close was incredibly bullish and indicates to him that a major push higher is imminent in the near-term.
“Monster 3d close on yfi about to form… if any relatively well known alts are going to make a new all time high yfi will be the first, strongest fundamentals in the entire space and thats just facts,” he said while pointing to the below chart.
Image Courtesy of SmartContracter. Chart via TradingView.
If YFI pushes higher in the days ahead, it could allow this week to be a positive one for the entire DeFi sector, as it may lead other tokens significantly higher as well.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on September 28, 2020 at 06:30AM
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