The Yearn Finance Price Is On Major Support Level

Summary:

The Yearn Finance Price is trading at $67,000 and just above the major support of a trendline at $66,860. A break could signal a decline back to $50,000.

Yearn Finance price is trading at $67,000 and just above the major support of a trendline at $66,860. A break could signal a decline back to $50,000.

The yield farming aggregator was first listed on Coinbase in September 2020. The opening price of $43,800 made it the first digital asset to trade at a higher per-unit price than Bitcoin.

However, unlike BTC’s current circulating supply of 18,711,243 there are only 36,635 available Yearn Finance tokens (YFI).

By the 5th of November, the Yearn Finance price had lost 80% from its debut and was trading at $7,454. Then came the fireworks.

In the 6 months that followed, YFI increased in value by almost 1,200%, topping out at $96,000 on the 12th of May.

With the price now approaching a major support level, we will soon know if there is a chance of returning to that high any time soon.

Yield Farming

Decentralized Finance (DeFi) provides financial services to the cryptocurrency market. Holders of digital assets can lodge their coins/tokens with DeFi providers and receive interest payments in return.

These assets are then lent to borrowers, who in turn, pay a fee.

Yield farming is the process of finding the DeFi provider that pays the highest rate of interest.

Yearn Finance offers a simple solution for lenders. It helps users find the optimal return on their assets. The growing popularity of Decentralized finance has fueled the Yearn Finance price rise in 2021.

YFI Price Prediction

The 2-hour chart shows us that YFI is close to breaking below a major trend line. This trend has been in place from the 13th of May low at $60,487.

I consider this to be an important level of support, as a clear break has the potential to push the Yearn Finance price back to $50,000.

A series of lows from early April provide support around the $50k mark.

If the price can stabilize above the trendline, it has a chance to recover. There is some resistance at $70,500, and YFI has failed to break above this area for the last 12 hours.

Therefore clearance of $70,500 would suggest the price can continue higher.

The first target would be 81,970, where the price stalled on the rally of the 14th of April.