Yearn.finance’s YFI governance token has been getting closer and closer to the $ 30,000 level in the past few days and weeks, although the selling pressure here has proven to be somewhat significant several times.
Overall, the price of crypto is currently in a similar queue pattern as Bitcoin and Ethereum.
By the time the larger digital assets break out – or collapse – and gain more momentum, there is a strong likelihood that YFI will continue to consolidate as well.
While it hasn’t been able to break over $ 30,000 yet, its technical outlook is getting better every day.
A trader now notices that the current technical structure of Yearn.finance is strikingly reminiscent of that of Ethereum at the end of 2016. At this point, crypto was going through a period of consolidation that resulted in a parabolic pulse breakout.
If history rhymes and YFI sees a similar breakout in the days and weeks ahead, there is a strong possibility that the cryptocurrency will enter another phase of pricing that is creating some parabolic dynamic.
According to the analyst, this dynamic is likely to extend well into 2021. He assumes that during this period there will be price movements similar to those of ETH during 2017.
Yearn.finance inches higher as investors watch $ 30,000
At the time of writing, Yearn.finance’s YFI token is trading a little over 3% at its current price of $ 28,400. This is roughly what it has been trading at for the past week.
It rose to $ 32,000 for a brief moment before encountering serious resistance and falling lower.
It has been closely following the general trends of Bitcoin and Ethereum lately, so it is imperative that these assets increase so that further profits can be made in the medium term.
Trader claims YFI could reflect a bullish ETH fractal
A trader stated a new tweet Yearn.finance’s YFI token could be about to reflect an extremely bullish Ethereum fractal from 2016, which would suggest that 2021 will be an incredibly positive year for the DeFi benchmark.
“Get the feeling that YFI will pull a $ ETH at the end of 2016 and build insane pressure in the form of an ascending triangle and get into pricing in late December to early January while the real bull run in 2021 (2017 for ETH). ”
Images Courtesy of HornHairs. Source: YFIUSD on TradingView.
Where all market trends will depend on Ethereum and Bitcoin in the medium term. These two digital assets have run the DeFi market, which means that the fate of Yearn.finance is at least partly in their hands.
Featured image from Unsplash. Charts from TradingView.