Yearn Finance’s governance token YFI surged on Thursday as traders valued its acceptance by MakerDao as a collateral asset.
The YFI/USD exchange rate rose 6.62% to $27,193, a multi-week high as part of an explosive rally that saw the stock surge nearly 300% in two weeks. The pair peaked at $44,026 in September 2020 before suffering a shocking plunge to a low of $7,015 in early November 2020.
Yearn Finance logs a bullish reversal after crashing 78 percent. Source: YFIUSD on TradingView.com
It is said that this time the YFI token may form a steady upward trend. many independent analysts On Twitter. Their optimistic bias mainly stems from the growth of Yearn Finance as a decentralized asset management platform since it began making beneficial updates to the protocol through democratic means.
optimistic upgrade
The platform passed four major YIP proposals this week, short for “Yield Improvement Proposals.” Effective integration into the Yearn Finance protocol enables new fee structures, YFI-backed reward distribution, quarterly financial audits, and operational funding.
The recent parade $OVER The Year Improvement Protocol (YIP) is very underrated in terms of what it does for the future. @iearnfinance. I am much more optimistic than when I first bought it. $OVER. why?
Thread:
— Matterhorn (@matterhorn_eth) November 15, 2020
This week we also saw MakerDAO accept YFI to open a collateralized debt position and mint the stablecoin DAI. Yearn Finance’s weekly newsletter commented:
“The acceptance of YFI in the MakerDAO system is an important milestone for the Yearn ecosystem as it opens up the possibility of using YFI to mint DAI in future v2 yVaults that leverage YFI as the underlying asset.”
YFI’s upward trend was also very consistent with the bull run in the Bitcoin market. The flagship cryptocurrency surged from $14,115 on November 5 to $18,488 on November 18. However, while BTC/USD has been trending lower over the past 24 hours, YFI has maintained its upward trend.
$30,000 YFI?
As previously mentioned, the Yearn Finance token is on its way to reaching $30,000 on a textbook bullish setup.
Yearn Finance Falling Wedge setup. Source: YFIUSD on TradingView.com
This structure, called the Falling Wedge, represents a strong bullish reversal after an asset has fallen within a pattern with two converging trend lines. After reaching the peak of the structure, the price begins an upward trend, rising to the maximum distance between the two trend lines.
YFI is now in its final stretch, with the wedge target hovering around $23,380 above the breakout point. It’s (almost) $30,000.
Conversely, if it fails to build bullish momentum after the recent correction, YFI/USD risks falling below $20,000 again.