Yearn.finance’s YFI governance token has found itself caught within a consolidation phase alongside Bitcoin and the rest of the crypto market.
It has been able to push significantly higher from where it was trading just a couple of weeks ago, with buyers attempting to form a price floor within the lower-$13,000 region.
Until BTC proves to investors that its recent push higher is the start of a long-term trend shift, investors may continue being somewhat hesitant to throw money back into highly volatile DeFi assets like Yearn.finance’s YFI token.
One analyst is noting that YFI may be well-positioned to see some significant upside in the near-term.
He points to a strong market structure, noting that a move past $20,000 could be in the cards in the weeks ahead.
He also adds that Bitcoin must enter a consolidation phase for this upswing to occur.
Yearn.finance Struggles to Gain Momentum as Crypto Market Stalls
At the time of writing, Yearn.finance’s YFI token is trading down just over 2% at its current price of $14,700. This marks a decline from highs of $15,500 set around this time yesterday.
For altcoins, the best possible path forward likely consists of BTC entering a consolidation phase that gives investors the chance to rotate capital into assets that have underperformed it over the past week.
If it continues pushing higher, investors may maintain their Bitcoin positions and not direct funds to tokens like Yearn.finance’s YFI.
Analyst: YFI Could Rally Past $20,000 in the Coming Days
He notes that YFI could soon rally up towards $20,000 due to its current technical strength.
“YFI / USD: Honestly not looking so bad at the moment, seems as though price action is holding above 15 for now, there could be room for a further +20% move to the upside. If BTC can consolidate here then there should be room for the majority of alts to start moving higher…”
Image Courtesy of Cactus. Source: YFIUSD on TradingView.
Featured image from Unsplash. Charts from TradingView.