YFI slowly inches towards $30,000 price range for the past few weeks, with the selling pressure proving to be of extreme importance on multiple occasions so let’s read more in today’s altcoin news.
The crypto’s space is now caught in a holding pattern similar to the one seen by BTC and ETH but until the larger digital asset breaks out or breaks down, or eventually gets a clear momentum, there’s a strong possibility that YFI will continue consolidating. Despite not being able to break above the $30,000 price range yet, the technical outlook is growing brighter by the day. one trader even noted that the YFI current technical structure reminds him of the Ethereum one in 2016. The cryptocurrency saw a consolidation phase which resulted in a breakout with a parabolic momentum as well.
If the history repeats itself, YFI could see a similar breakout in the days and weeks ahead with a strong possibility of entering another price discovery phase that will result in seeing a parabolic momentum. The momentum could extend into 2021 according to the analyst and he reckons that it will see similar price action in the same period as ETH did in 2017. At the time of writing, Yearn.Finance’s token was trading down at over 3% of the current price of $28,400. This is around the same price at which it was trading over the past week and for a brief moment, it even hit $32,000 before it met some serious resistance and dropped lower.
YFI slowly inches to $30,000 and it was tracking the overall trends seen by BTC and ETH making it imperative that these assets will rally higher for more gains in the mid-term. One trader commented that Yearn.finance could be in the process of mirroring the highly bullish ETH fractal from 2016 which could indicate that 2021 will be a very strong year for the DeFi benchmark:
“Get the feeling YFI is gonna pull a late 2016 $ETH and build up insane pressure in the form of an ascending triangle and blast off into price discovery during late December-early January whilst the real bull run plays out in 2021 (2017 for ETH).”
Where will the entire market trend in the mid-term will depend on ETH and BTC as these two assets were guiding the Defi market which means that Yearn. Finance’s fate will be partially in their hands.
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