The price of Yearn.finance’s YFI governance token has recently stagnated, floating within the lower- $ 20,000 region without being able to gain serious momentum.
This is because the entire DeFi space is generally in a consolidation phase. Investors’ attention is focused on Bitcoin as most altcoins – including Ethereum – are stagnating and losing ground against the benchmark cryptocurrency.
From a fundamental standpoint, the Yearn.finance ecosystem is stronger than ever, and the introduction of new products and new parts of the ecosystem are only making it stronger.
While this has yet to be reflected in the price of YFI, there is a high probability that this trend will change once it arrives an event for capital rotation away from BTC and to altcoins – and DeFi in particular.
It remains unclear how long it will take for this to happen, but it will likely be guided by Ethereum gaining serious ground against its Bitcoin trading pair, which has yet to take place.
One trader notes that in the near term, YFI is about to see incredibly bullish momentum.
He notes that the crypto is likely to move towards the upper USD 20,000 region in the near term, thanks to its strong base of support just below the current price.
Yearn.finance’s YFI is stagnating despite Bitcoin Uptrend
Bitcoin’s parabolic rally hasn’t been enough to hold the wind crypto market, with Ethereum and most other altcoins seriously underperforming it lately.
The DeFi sector has been vulnerable, with new private investors backing the BTC rally but not yet familiar with this snippet of the market.
Yearn.finance’s YFI token is an example of a prominent DeFi token that has yet to rise, with a price steady between $ 22,000 and $ 23,000 for the past few weeks.
It probably won’t be able to recover until Ethereum gains ground against Bitcoin.
Trader: YFI can get ready to push higher
One trader believes a Yearn.finance rally could be around the corner, noting that the strong base of support below the current price seems to indicate that a rise towards the USD 27,000 resistance could be imminent.
“YFI update: Finally moving? Stay as patient as possible with this one, ”he said, pointing to the chart below.
Image Courtesy of Chase_NL. Source: YFIUSD on TradingView.
Watch to see how Ethereum acts against BTC should provide insight into whether DeFi altcoins like Yearn.finance’s YFI will see explosive momentum in the coming days and weeks.
Featured image from Unsplash. Charts from TradingView.