Yearn.finance (YFI) Could be Coiling Up for a Rally; Analysts Eye $27,000
Yearn.finance’s YFI governance token’s price has been stagnant as of late, hovering within the lower-$20,000 region without being able to gain any serious momentum.
This comes as the entire DeFi space generally sits within a consolidation phase. Investors’ attention is concentrated on Bitcoin as most altcoins – including Ethereum – stagnate and lose ground against the benchmark cryptocurrency.
From a fundamental standpoint, Yearn.finance’s ecosystem is stronger than ever, and the introduction of new products and new parts of the ecosystem are only making it stronger.
Although this has yet to reflect in YFI’s price, there’s a strong possibility that this trend will shift once there’s a capital rotation event away from BTC and into altcoins – and DeFi in particular.
It remains unclear how long it will be before this occurs, but it will likely be led by Ethereum gaining serious ground against its Bitcoin trading pair, which has yet to take place.
One trader is noting that YFI could be on the cusp of seeing some incredibly bullish momentum in the short-term.
He notes that the crypto will likely trend towards the upper-$20,000 region in the near-term, thanks to its strong base of support just below its current price.
Yearn.finance’s YFI Stagnates Despite Bitcoin Uptrend
Bitcoin’s parabolic rally has not been enough to create tailwinds for the aggregated crypto market, with Ethereum and most other altcoins severely underperforming it as of late.
The DeFi sector has been fragile, with new retail investors who are backing the BTC rally not knowing about this fragment of the market yet.
Yearn.finance’s YFI token is an example of a prominent DeFi token that has yet to rally, with its price holding steady between $22,000 and $23,000 for the past few weeks.
It likely won’t be able to rally until Ethereum gains ground against Bitcoin.
Trader: YFI Could Be Getting Ready to Push Higher
One trader does believe that a Yearn.finance rally could be right around the corner, noting that the strong base of support below its current price seems to indicate that a move up towards its $27,000 resistance could be imminent.
“YFI update: Finally moving? Remaining as patient as possible with this one,” he said while pointing to the below chart.
Image Courtesy of Chase_NL. Source: YFIUSD on TradingView.
Watching to see how Ethereum trades against BTC should provide insights into whether or not DeFi altcoins like Yearn.finance’s YFI will be able to see any explosive momentum in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
OhNoCrypto
via https://www.ohnocrypto.com
Cole Petersen, @KhareemSudlow