The value of YFI might resume the medium/long-term upward trend, but it must break through the resistance at USD 38,350. It has maintained a bearish direction in the short term but is only a pullback after a big bullish rally.
Although a strong feeling of uncertainty and fear marks the current crypto market situation, some news has boosted some currencies. For example, the YFI token briefly detached itself from the widespread behavior after Yearn Finance announced a buyback that drove the price higher.
YFI is currently trading at around USD 32,235 and has accumulated a gain of 3.7% in the last 24 hours. Its daily trading volume is above USD 387.2 million, and its market capitalization is about USD 1.15 billion, according to CoinGecko.
The developing team behind the Yearn Finance DeFi announced an aggressive token buyback program. They seek to increase the scarcity of the crypto asset and promote an increase in its price.
Yearn Finance recently revealed the first buyback for a total of USD 7.52 million, at USD 26,651 per token. As a consequence, the price of YFI immediately reacted to the upside.
The developers bought 282.4 YFI, equivalent to 0.77% of the total supply of the crypto asset. That buyback alone allowed them to accumulate more tokens than throughout last year.
The Technical Analysis of the Value of the YFI Token
The monthly YFI/USD chart indicates an excellent scenario after recent gains led to the strong rejection of low prices. Quite relevant support was close to USD 22,700.
There is currently an opportunity for the value of YFI to resume the medium/long-term upward trend.
However, it must break through the resistance at USD 38,350 to confirm that the trend has returned to the bulls. When that happens, the price of YFI could quickly seek new all-time highs.
The Weekly Chart of the Price of the YFI Token
In the last week, the price of the YFI token has maintained a quite bearish short-term direction.
However, this bearish direction is only a pullback after a big bullish rally, so the purchasing power still dominates.
The price currently rises strongly and challenges the resistance around USD 27,000.
Although there may be new sales from the current point, the drop of YFI from its all-time high of USD 96,000 is quite considerable.
The support at USD 18,500 can lead to new momentum, but there must be increasingly high lows and highs.
Yearn Finance Is Ahead of Ether and Solana
YFI seems to be gaining prominence as it rose by more than 43.46% in the last few days. By contrast, Ether (ETH) dropped by 3.38%, while Solana (SOL) fell by 1.57%.
With over USD 5.5 billion in total value locked (TVL), analyst Adam Cochran described YFI as his first choice for next year. The analyst even said that 2022 would be the year of the Yearn Finance token.
In November, there was a significant increase in addresses keeping some balance on the network. Although the cryptocurrency market crash affected the price movement of the YFI, it could not keep it down for long.
Optimism has helped the token experience short sales higher than long sales in over eight months. The reason for that is that volumes recently soared by 480%.
By Alexander Salazar
