Yearn Finance’s YFI is up as much as 16% in just two days of trading, even as its peers in the cryptocurrency market bleed.
The decentralized finance token hit an intraday high of $25,858 during an early trading session in London. According to data taken from the Binance cryptocurrency exchange, the YFI/USD rate hit a weekly low of $17,605.
Merger
The two have shown signs of recovery after Yearn Finance announced its merger with Pickle Finance, marking a unique partnership between the two decentralized finance projects. Pickle Finance is a revenue-generating project that works to maintain the peg of stablecoins.
Two days after the merger, Yearn Finance announced a similar partnership with Cream, a decentralized lending protocol running on the Ethereum blockchain. A day later, on Friday, rumors began circulating that Yearn Finance founder Andre Cronje was looking to merge (or acquire?) decentralized exchange SushiSwap.
The DEX’s native token, SUSHI, rose 17% on the news.
Andre Cronje has assets worth $800,000. $sushi
If I had to guess, I think SUSHI would be next. $OVER Merger? https://t.co/iFcfP0v4kU pic.twitter.com/nuNq2XFdy0
— LilMoonLambo? (@LilMoonRambo) November 27, 2020
Some skeptics criticized Mr. Cronje for unilaterally signing the new partnership without requiring a governance vote among YFI holders. Despite this, most of the Yearn Finance community has ignored the criticism, quietly showing support for anything that grows the YFI ecosystem.
Some of the cheerful guys are called Yearn Finance, the first emerging “DeFi giant”. This also explained why YFI showed signs of recovery after a week that saw even the best cryptocurrency tokens falter. The token served as an exaggerated hedge at best.
Instead of building to drive new features, you “acquire” the entire project (0 for YFI). I left a comment. I’m Tom Shaughnessy, co-founder of investment research firm Delphi Digital. “The LT value cap for acquired tokens may currently be TBD, but ensuring developer/project/liquidity is YFI “Long term.”
YFI Trading Settings
Technically, YFI has been trending towards a short-term correction, especially after rising 338% from its early November low of $7,015. Due to the recent consolidation, the DeFi token is expected to resume its upward trend in the coming sessions if it maintains support above a certain price floor.
Yearn Finance posts gains in choppy trading sessions. Source: YFIUSD on TradingView.com
The first is the area between $14,729-$18,761, which has historical significance as resistance and support. If YFI/USD falls below that range, it risks dismantling the entire upward movement by targeting a price target below $12,000.
But Mr. Thanks to the fundamental outlook confirmed by Shaughnessy, YFI may still have enough fuel to find support above the $14,729-$18,761 range. If that happens, YFI will be eyeing a retest of $30,000.