Yearn.finance’s YFI token has been surprisingly strong throughout the past few days, with its price holding well-within the mid-$20,000 region despite the selloff currently taking place across the aggregated crypto market.
When Bitcoin was first rejected at $19,500 and began its decline, YFI moved in tandem and dropped to $18,000.
The narrative built throughout the past few months regarding shorting YFI being a higher return way to hedge against BTC downside may actually be one of the main factors behind its strength, as a short squeeze might have caused its latest rebound.
This has allowed the entire DeFi sector to hold up quite well despite the losses seen by ETH and the rest of the market.
One trader is now noting that YFI could be well-positioned to see significantly further upside in the days and weeks ahead.
He notes that a move past $30,000 could occur as bulls begin gaining greater control over its trend.
If this rally does take place, it could ignite another wave of DeFi mania that allows the entire sector to post some massive gains.
Yearn.finance’s YFI Shows Signs of Strength Despite BTC’s Downturn
At the time of writing, Yearn.finance’s YFI token is trading up marginally at its current price of $23,500. This marks a massive surge from its daily lows of $18,000 set roughly 24 hours ago.
The selling pressure that pushed it to this key support level came about due to the declines seen by both Bitcoin and Ethereum.
Its technical strength is also being bolstered by the merger and acquisition spree that the Yearn.finance protocol has been on over the past week.
Some notable additions to the ecosystem include Pickle, Cream, and rumors are floating about a potential Sushi merger – although these have yet to be confirmed.
Trader Claims YFI Likely to Rally Past $30,000 Next
The combination of Yearn.finance’s YFI token’s technical strength, imminent product releases, and an ongoing M&A spree indicates that it could buck the market-wide downtrend and rally higher in the days and weeks ahead.
One trader spoke about this in a recent tweet, noting that he expects a move up towards $32,000 in the near-term.
“YFI – It’s time to move towards the origin of the Series of HL imo.”
Image Courtesy of UB. Source: BTCUSD on TradingView.
Yearn.finance’s future price action may not depend that much upon that of Bitcoin or Ethereum, but a continuation of their respective uptrends will certainly bolster its strength.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on November 28, 2020 at 02:30AM
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