Yearn.finance’s YFI token is once again going parabolic, with investors pouring massive capital into it as its price rockets towards $30,000.
This marks a massive rise from its recent lows of $7,500 set just a few days ago, with buyers taking full control of the cryptocurrency as they aim to send its price rocketing towards $30,000.
The intensity of its recent recovery has come as all the “blue-chip” DeFi tokens see intense rebounds from their recent lows, signaling that this entire sector may make a resurgence in the near-term.
YFI’s latest leg higher may also have come about due to the Yearn.finance founder teasing decentralized option trading in a recent tweet.
$30,000 is a crucial resistance level that analysts are closely watching. The support and resistance here have been quite intense in the past, which would make a break above or below this level technically significant.
One analyst is noting that it is already showing some signs of being overheated, leading one respected trader to take some profits off the table.
That being said, a $30,000 test could still be imminent, and how it responds to the selling pressure here will likely set the tone for its mid-term trend.
Yearn.finance’s Uptrend Reaches a Boiling Point as Bulls Target $30,000
At the time of writing, Yearn.finance’s YFI token is trading up over 10% at its current price of $28,300. This marks a serious rise from its multi-week lows of $7,500 set at the bottom of the recent market-wide selloff.
Where the cryptocurrency trends in the near-term may depend largely on whether or not bulls can stop it from seeing any strong rejection at $30,000.
This is the crucial near-term resistance level that analysts are closely watching.
Analyst: YFI’s Uptrend May Be Getting Overheated
One analyst explained in a recent tweet that he is beginning to grow cautious on the cryptocurrency, noting that Yearn.finance’s uptrend may begin slowing down as bulls push it towards $30,000.
“Quick update on YFI. I closed out 60% of my long at this swing high, think it’s a good place to take some profit. I’ll let the rest target 30K~ area if it wants to keep running.”
Image Courtesy of Chase_NL. Source: YFIUSD on TradingView.
The coming few days should shine a light on where the entire DeFi sector will trend next, as Yearn.finance has become a benchmark for the cryptocurrency.
Featured image from Unsplash. Charts from TradingView.