Here’s the Key Level Yearn.finance (YFI) Needs to Break to See Price Discovery
- It has been a rocky past few days for Yearn.finance’s YFI governance token
- The cryptocurrency has been closely tracking Bitcoin and the rest of the crypto market, which has exposed it to some downside as of late
- The entire DeFi market has been drifting lower over the past few days as traders widely begin going “risk-off” to hedge against any Bitcoin downside
- This has placed some pressure on YFI’s price, although overall it is holding up quite well
- The cryptocurrency is still trading up roughly 400% from its multi-week lows
- One trader is now noting that there is one key price level that the crypto needs to break for it to enter price discovery mode
Yearn.finance’s YFI token has been caught in the throes of an intense bout of consolidation within the upper-$20,000 region, which is around where its recent uptrend stalled.
For a brief moment a few weeks ago, bulls were able to push its price as high as $31,000 before it lost its momentum and declined to the upper-$20,000 region.
One trader is now noting that the cryptocurrency could be well-positioned to see some serious upside in the days and weeks ahead.
He notes that this possibility hinges on the cryptocurrency breaking above $29,000.
Yearn.finance’s YFI Token Dips as Market-Wide Momentum Slows
At the time of writing, Yearn.finance’s YFI token is trading down just under 5% at its current price of $27,150. This is around the price at which it has been trading throughout the past few days and weeks.
Although bulls have stopped it from breaking below the mid-$20,000 region on multiple occasions, they have also struggled to push its price above $30,000, with the selling pressure here being significant.
YFI Might Enter a Price Discovery Mode if It Breaks One Key Level
Once $29,000 is firmly surmounted, he believes that it could see a swift and violent move higher.
“YFI / USD: If PA can flip $29,000 as support then price discovery.”
Image Courtesy of Cactus. Source: YFIUSD on TradingView.
For this possibility to come to fruition, it is imperative that Ethereum and the rest of the market rallies and creates a tailwind for Yearn.finance (YFI).
Featured image from Unsplash. Charts from TradingView.