It’s been a wild time in the past few days and weeks for Yearn.finance’s governance token. YFI bulls attempted a strong uptrend earlier this week when they topped the $ 18,000 level as this has long been a macro resistance level for the cryptocurrency.
The break above that level was technically significant, which appears to be confirmed by the subsequent rally, with crypto rising towards the mid-$ 20,000 region.
Despite the intense sell-off that Ethereum and Bitcoin saw yesterday, YFI has stayed strong and is entering another full-fledged bull trend.
It’s now down around 50% from its all-time highs, and rising yields within the yVaults and renewed sentiment among investors suggest that serious upward moves could be ahead in the days and weeks to come.
A trader is now realizing that a move towards $ 27,000 could be imminent in the near term.
He points to negative funding as the reason the uptrend is imminent and suggests that it suggests that there is serious room for upside movement in the days ahead.
Yearn.finance sees an explosive upward trend
At the time of writing, Yearn.finance’s YFI token is trading marginally at its current price of $ 24,000. This is a massive increase from the recent lows of $ 7,500 set a few days ago.
As long as it stays at $ 18,000 above resistance that has turned into support, it can see further gains in the short term.
It appears to face strong resistance around $ 25,000. Once this level is flipped in support it can move up to its previous all-time highs.
Unlike the DeFi rally this summer, this latest rally has emerged in parallel with a surge in Bitcoin and Ethereum. It also emerged as investors turned their attention to higher quality projects versus shiny new uniswap listings with 10x the potential.
Trader claims YFI will likely tap $ 27,000 next
While he shares his thoughts on where Yearn.finance’s YFI token might go in the short term, it is a trader explained that he’s waiting for a $ 27,000 move.
He points to the negative funding rates as one reason why crypto could see a sharp surge in the coming days and weeks.
“YFI: No changes. I still expect 27 km all day. Not to mention the funding is still negative. “
Image Courtesy of NekoZ. Source: YFIUSD on TradingView.
If Bitcoin and Ethereum do not create a headwind for the DeFi area in the coming days, there is a high probability that the YFI of Yearn.finance will continue to rise in the medium term.
Featured image from Unsplash. Charts from TradingView.