Yearn.finance’s YFI Could Soon Rally Past $20,000 as Technical Strength Grows
Yearn.finance’s YFI governance token has been struggling to gain any momentum throughout the past few days and weeks, with buyers aiming at sending the cryptocurrency significantly higher.
YFI’s token has been flashing immense signs of strength throughout the past few weeks, with buyers taking control of its price action after massive inflows of selling pressure sent it down to $7,500 just a couple of weeks ago.
It is now trading up over 100% from these lows but is struggling to break above the heavy selling pressure that exists within the lower-$18,000 region.
Until it can shatter the selling pressure that exists here and rally up to fresh highs, there’s a strong possibility that it will continue consolidating or possibly face some selling pressure.
One trader is pointing to a recently formed technical pattern, noting that he believes that the crypto is poised to rally significantly higher in the days and weeks ahead.
He specifically is looking towards it seeing a move past $20,000, noting that this could open the gates for serious upside in the days, weeks, and months ahead.
Yearn.finance’s YFI Remains Stable Below Key Resistance Despite Market Turbulence
At the time of writing, Yearn.finance’s YFI token is trading down marginally at its current price of $17,100. This is around where it has been trading throughout the past few days.
The resistance at $18,000 is intense and has catalyzed multiple selloffs over the past few days and weeks.
If bears continue holding this level as resistance and cannot post any high time frame close above it, it may see either a prolonged consolidation phase or begin erasing its recent gains.
Analyst: YFI Could Soon Post a Breakout Towards $20,000
One trader explained in a recent tweet that he is watching for an imminent break above $20,000.
He notes that Yearn.finance has formed what appears to be a bullish triangle formation, with these patterns often resulting in upwards breakouts during bull markets.
“YFI – I’m long. Triangle break. Works until it doesn’t. Hasn’t failed me in the last few trades. Long the triangle break szn,” he said while pointing to the chart seen in the below chart.
Image Courtesy of UB. Source: YFIUSD on TradingView.
Where DeFi altcoins like Yearn.finance trend in the near-term may depend largely on whether or not Ethereum, Bitcoin, and the rest of the market can remain somewhat stable.
Featured image from Unsplash. Charts from TradingView.
Bitcoin News Network