- Yearn.finance yVaults will soon support UniSwap (UNI) yield farming.
- YFI/USD renews the uptrend towards $20,000 after bouncing off support at $16,000.
Yearn.finance, received a massive beating last week, losing over 38% of its value. However, the losses were not unique to the decentralized finance (DeFi) token because leading digital assets such as Bitcoin and Ethereum dived to $10,400 and $335, respectively.
Last week, the losses in the market affected most of the cryptocurrencies apart from the top 3 performers, as discussed on Saturday. Meanwhile, YFI is teetering at $19,454 following an extended breakdown from its all-time high of $44,000, traded mid-September. Support at $16,000 is key to the ongoing recovery.
Yearn.finance will soon support UniSwap yield farming
The DeFi remains one of the most diverse and dynamic sectors of the cryptocurrency industry. It has given newly launched tokens like YFI a global presence by allowing them to offer financial solutions to anyone across the world. Yearn.finance users have an opportunity to earn from various DeFi projects through a process called yield farming.
In line with this, Yearn.finance developers have announced the imminent release of version two of yVaults that would farm UniSwap (UNI). UNI is a relatively new token that was launched by the decentralized exchange and liquidity provider, UniSwap. The news has been received well by the community and perhaps it is the force behind the ongoing recovery.
Yearn.finance renews the uptrend as volatility returns
After revisiting support at $16,000, YFI is in the middle of recovery. However, to guarantee sustained gains, the short term resistance at $20,000 must come down. The Relative Strength Index (RSI) clearly shows that the odds favor the bulls. The indicator is almost crossing above the midline. If the uptrend progresses towards the overbought area, the upper leg could extend to $22,000.
The descending parallel channel highlights growing resistance towards $22,000. The channel resistance has not wavered since the all-time high. Therefore, bulls must focus on pulling above the channel to confirm a bull flag pattern.
YFI/USD 4-hour chart
Santiment’s age consumed metric highlights a spike in the movement of tokens as they change addresses. According to Santiment Academy, “age consumed shows the number of tokens changing addresses on a certain date, multiplied by the time since they last moved.” The spike on the chart mainly highlights the movement of a colossal amount of tokens following a long period where they remained idle. Spikes in age consumed tends to signal potential volatility. In this case, 4,800 YFI tokens moved on October 4. The movement happened before the ongoing volatility started.
YFI age consumed chart
IntoTheBlock’s IOMAP highlights a challenging path towards $22,000. The largest resistance runs from $20,600 to $21,200. Here, nearly 560 addresses previously bought 1,600 YFI. While this is the most prominent resistance, other equally strong hurdles could delay breakout to $20,000. On the flip side, the absence of a strong support area spells doom for Yearn.finance in the near term. The most significant support lies between $17,100 and $17,700, a range where nearly 130 addresses bought roughly 54 YFI.
YFI IOMAP chart
Looking at the other side of the picture
Yearn.finance bulls are taking advantage of the volatility to push their agenda for gains above $20,000 and towards $22,000. However, the descending channel’s middle boundary layer support must stay intact for some of these gains to come into the picture. Otherwise, losses could resume, testing the support highlighted by the IOMAP at $17,700 - $17,100. The same metric brings to light the tough resistance heading to $22,000. Therefore, it is doubtful that there will be a quick rally to the near term target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.