Yearn.finance surges to $25,000

Yearn.finance surges to $25,000

By - min read
A logo of YFI cryptocurrency

YFI’s price surged by more than 20% as DeFi bulls looked to bounce right after Bitcoin soared to $18,000

DeFi token yearn.finance (YFI) skyrocketed by more than 20% as the crypto bull market picked fresh upside pressure.

As the Bitcoin price exploded above $18,000 to excite the crypto market, YFI bulls pushed higher to add close to $4,000 to the token’s value. The upside saw YFI/USD jump from just over $21,000 to touch an intraday high of $24,885.

The token has, however, corrected lower and trades around $23,400 at the time of writing. It is likely that sideways trading or dips to a $22,000-$21,000 range will follow before another fine move towards the $25K resistance.

YFI price outlook

YFI’s price remains in a bullish trend despite running into a bit of downside pressure as shown on the 4-hour chart. The token has printed two red candles on the chart, coming after the latest rally saw YFI/USD break above a rising channel pattern.

The price is however above the 20-day exponential moving average as well as the 50-day simple moving average. These levels provide support in the event that bears force prices beneath the upper boundary of the channel.

YFI/USD 4-hour price chart. Source: TradingView

On the 1-day log, the YFI price has a healthy support zone at the 20-day EMA at $16,635 and 20-day SMA at $14,665. Although the daily RSI suggests a bearish turn, bulls will likely remain in charge as long as the price does not drop below the trendline.

YFI/USD daily price chart. Source: TradingView

Despite the YFI price still having a long way to go before reaching its all-time peak of $44,000, the rally to $25,000 is impressive given the token was trading at lows of $7,500 as of 05 November.

If the strong fundamental front holds, and the larger DeFi market rebounds, YFI price could test resistance at the $30,000-$32,000 range.

At the time of writing, the total value locked (TVL) in DeFi protocols is over $13.4 billion, with investors locking 11% more value in YFI over the past 24 hours. There’s currently more than $13.4 billion in DeFi TVL, $414 worth of assets in YFI.

However, yearn.finance lags SushiSwap, Aave, Uniswap, Compound, WBTC and Maker which have more than 1 billion each in TVL.