Yearn.finance’s YFI governance token has seen some immense volatility throughout the past few days and weeks, with buyers sending it rocketing over 100% from its recent lows while now attempting to hold it above a crucial resistance level.
The selling pressure at this resistance had held strong throughout the past several days and weeks, with buyers ardently attempting to spark multiple downside movements when it reached this level.
However, bulls are flashing signs of immense strength today and are now moving to flip this level into support. Holding above it could allow the aggregated DeFi sector to push higher, as YFI has become a benchmark indicator for this fragment of the market.
One trader is also noting that a historically bullish pattern is bolstering YFI’s current technical outlook.
He believes that this could mean that the crypto is poised to see some significant upside in the near-term, potentially leading it up towards the lower-$20,000 region.
Once the resistance that exists here is broken, the crypto could see a parabolic rise that allows it to set new highs.
Yearn.finance Shows Signs of Strength as Bulls Break Key Resistance
At the time of writing, Yearn.finance’s YFI token is trading up nearly 6% at its current price of $18,600.
Where the entire market trends in the near-term will depend largely on whether or not it can post a high time frame close above its key $18,000 resistance, which may soon become support.
The break above this level favors bulls and indicates that significantly further upside could be in store for the cryptocurrency.
YFI’s ongoing uptrend also comes as the rest of the market begins pushing higher, with Bitcoin nearing $17,000 while most altcoins closely mirror its gains.
Trader Claims YFI Could Soon Push Past $20,000
While sharing his thoughts on where Yearn.finance’s YFI might trend in the near-term, one analyst explained that he is watching the lower-$20,000 region’s resistance levels.
He notes that a break above these levels could send it flying up towards its previous highs.
“Sumthin like this for $YFI on the mid term. We break that target area and we go to moon once again.”
Image Courtesy of NekoZ. Source: YFIUSD on TradingView.
Where the Yearn.finance token closes its daily candle in the coming few hours should provide some insight into where it will trend throughout the week ahead.
Featured image from Unsplash. Charts from TradingView.
5 Things to Consider Before Investing in Cryptocurrency
Tax on Cryptocurrency In India – Complete Guide 2022
What Online Industries Affect The Growth of Crypto the Most in 2023?
New Cryptocurrency Bill Advances to Senate in Brazil
USDC Sees Native Launch on Avalanche