- The past few days have been tough for Yearn.finance’s YFI governance token
- The cryptocurrency is closely following Bitcoin and the rest of the crypto market, exposing it to a downside of late
- The entire DeFi market has drifted down in recent days as traders start taking “risk off” on a large scale to hedge against any Bitcoin downside
- This has put some pressure on YFI’s price, although it generally holds up quite well
- The cryptocurrency is still trading up about 400% from its multi-week lows
- A trader now notes that there is one major price level that the crypto must break in order to get into price detection mode
Yearn.finance’s YFI token has been caught in the throes of an intense wave of consolidation in the USD 20,000 upper region, where the recent upward trend came to a halt.
A few weeks ago, bulls were able to push the price up to USD 31,000 for a moment, before losing momentum and falling back to the top USD 20,000 region.
A trader now notes that the cryptocurrency could be well positioned to see a serious advantage in the coming days and weeks.
He notes that this possibility hinges on breaking the cryptocurrency above USD 29,000.
Yearn.finance’s YFI token is declining as market-wide momentum slows
At time of writing, Yearn.finance’s YFI token drops just under 5% at the current price of $ 27,150. This is around the price it has been trading at for the past few days and weeks.
While bulls have prevented it from breaking below the mid-USD 20,000 on several occasions, they have also struggled to push the price above USD 30,000, with the selling pressure being significant here.
YFI could enter a price detection mode if it breaks one key level
Once $ 29,000 is firmly over, he believes it could see a rapid and violent rise.
“YFI / USD: If PA can turn over $ 29,000 as support, then pricing.”
Image Courtesy of Cactus. Source: YFIUSD on TradingView.
For this opportunity to flourish, it is imperative that Ethereum and the rest of the market come together and create a tailwind for Yearn.finance (YFI).
Featured image from Unsplash. Charts from TradingView.