Yearn.finance’s YFI token has been surprisingly strong for the past few days. The price was well in the middle of the $ 20,000 region despite the current sell-off in the aggregated crypto market.
When Bitcoin first declined at $ 19,500 and started its decline, YFI moved together and dropped to $ 18,000.
The narrative built up over the past few months that shorting YFI represents a higher return to hedge against BTC downward moves may actually be one of the main drivers of its strength as brief pressures may have led to its recent rebound.
This has allowed the entire DeFi sector to hold its own quite well despite the losses from ETH and the rest of the market.
A trader now notes that YFI could be well positioned to see a significant uptrend in the days and weeks ahead.
He notes that a move past $ 30,000 could occur as the bulls begin to take more control of their trend.
If this rally takes place, it could spark another wave of DeFi mania that will allow the entire sector to make massive profits.
Yearn.finance’s YFI is showing signs of strength despite BTC’s downturn
At the time of writing, Yearn.finance’s YFI token is trading marginally at its current price of $ 23,500. This is a massive increase from its daily lows of $ 18,000 that were set about 24 hours ago.
The selling pressure that brought it to this important level of support was due to the declines in Bitcoin and Ethereum.
The technical strength is also strengthened by the merger and acquisition campaign that the Yearn.finance protocol carried out last week.
Some notable additions to the ecosystem include pickle, cream, and rumors of a possible fusion of sushi – although these have not yet been confirmed.
Trader claims YFI is expected to go above $ 30,000 next
The combination of the technical strength of Yearn.finance’s YFI token, upcoming product releases, and an ongoing M&A spree suggest that it could counter the market-wide downtrend and increase in the coming days and weeks.
A dealer talked about it in a new tweetand notes that he expects a spike towards $ 32,000 in the short term.
“YFI – It’s time to get closer to the origins of the HL imo series.”
Image Courtesy of UB. Source: BTCUSD on TradingView.
Yearn.finance’s future price movement may not depend as much on that of Bitcoin or Ethereum, but a continuation of their respective upward trends will certainly add to its strength.
Featured image from Unsplash. Charts from TradingView.