DeFi’s Yearn Finance Rally Continues: $100k in Sight?
DeFi darling Yearn Finance (YFI) continues its rally after strengthening by nearly 20% through the previous session, but it looks like its bullish momentum is weakening as technicals point to a possibility that its price is entering the overbought region. At the time of writing, YFI/USD is trading just above $85.000.
The most recent rally seen over the past couple of days has been the second strongest price increase in this governance token, although it has been mostly bullish since late last year when the most recent surge in the overall crypto market began. In the first quarter of this year alone, Yearn Finance earned nearly $5 million – a 30% jump when compared to the overall earnings through the whole of 2020.
With the ever increasing popularity of the DeFi ecosystem, more users have been attracted to Yearn Finance as a leading option to earn passive yields on their crypto investments. In Q1 2021, the TVL of the Yearn ecosystem crossed $2 billion and by the mid of April, it had gone beyond $3 billion.
Key Levels to Watch
For now, markets are keen to see if YFI can make a break above the key $100,000 level, powered by the ongoing uptrend. The 4-hour price chart of YFI/USD is throwing up mixed signals, with leading indicators Stochastic RSI and Momentum pointing to a bearish bias even as moving averages and the MACD indicator support the continuation of the bull run.
The next immediate level of interest sits at the $90,000 level which can act as resistance. While a break above this leaves $100k in sight, a fall below the level can easily send YFI down to $72,000 where it can find some support.
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