Yearn.finance’s YFI governance token has seen tremendous momentum today, with the cryptocurrency’s price skyrocketing as buyers take control over the medium term.
The crypto is trying to break above its critical short-term resistance, which is around USD 18,000. It has taken a few pauses above this level, but each time it faces an influx of sales pressure.
Where it develops in the short term largely depends on whether this level can be easily overcome in the coming days and weeks. If buyers are struggling to break through the selling pressure here, it could be a serious sign indicating a downside is imminent.
The wider DeFi sector has seen tremendous strength in recent days.
This has come about as yields for the yVaults and for liquidity savings are starting to rise across multiple platforms.
This will no doubt amplify the price action seen by revenue aggregator assets including Yearn.finance.
To move higher, Ethereum must remain strong as ETH is the backbone of the DeFi ecosystem.
Yearn.finance’s YFI token rises to key resistance
At the moment of writing, Yearn.finance’s YFI token is trading more than 15% at the current price of $ 18,000. This marks a massive rebound from the daily lows of $ 15,990 that were set just a handful of days ago.
Last week, when the cryptocurrency’s price plummeted to a low of $ 7,500, the buying pressure here triggered an almost instant buying frenzy that caused the price to surg to $ 18,000.
Resistance here has been intense and has remained strong ever since, but it is now showing signs of strength as bulls try to break above this key level.
This large fund has loaded YFI
Polychain – a major crypto venture fund – loaded Yearn.finance’s YFI token during the recent sell-off and now holds 1.6% of the total supply.
Analytics company Santiment spoke about this a recent tweet, explaining that some major sellers have also closed short positions on the token.
Do we see the return of the DeFi darling, YearnFinance? For the past week, the segment has dominated the crypto return rankings. A whale has shorted after Crypto Twitter went hunting briefly – in an attempt to force the whale to be liquidated. Meanwhile, PolyChain has brought their total holdings to 470 YFI ($ 8 million or 1.6% of the total supply). “
Image Courtesy of Santiment.
Where Yearn.finance’s YFI trends will be next will likely lead the whole DeFi sectormaking it essential for bulls to take control.
Featured image from Unsplash. Charts from TradingView.