The price of Yearn.finance’s YFI governance token has recently stagnated, moving in the region at less than USD 20,000 without receiving any serious impetus.
This is because the entire DeFi space is generally in a consolidation phase. Investor 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 only makes it stronger.
While this is not yet reflected in the price of YFI, there is a strong possibility that this trend will change once a capital rotation event from BTC to Altcoins – and DeFi in particular – occurs.
It remains unclear how long it will take for this to happen, but it is likely being led by Ethereum, which is seriously contesting its Bitcoin trading pair, which has not yet taken place.
One trader notes that in the short term, YFI may be on the verge of seeing incredibly bullish momentum.
He notes that due to its strong support base just below its current price, crypto is likely to trend toward the top $ 20,000 region in the near future.
Yearn.finances YFI stagnates despite the Bitcoin upward trend
Bitcoin’s parabolic rally has not been enough to generate tailwind for the aggregate crypto market as Ethereum and most other altcoins have underperformed sharply lately.
The DeFi sector has been fragile and new retail investors backing the BTC rally are still ignorant of this fragment of the market.
Yearn.finance’s YFI token is an example of a well-known DeFi token that has not yet recovered. Its price has been constant between $ 22,000 and $ 23,000 over the past few weeks.
It likely won’t be able to recover until Ethereum gains ground against Bitcoin.
Trader: YFI might be ready to push higher
A trader believes a Yearn.finance rally could be just around the corner and notes that the strong base of support below its current price suggests an upward move towards its $ 27,000 resistance is imminent.
“YFI Update: Finally moving? Be as patient with this as you can, ”he said, pointing to the table below.
Image courtesy of Chase_NL. Source: YFIUSD on TradingView.
When you see Ethereum trading against BTC, you should know if DeFi altcoins like Yearn.finances YFI can see explosive momentum in the days and weeks ahead.
Featured image from Unsplash. TradingView charts.