Yearn Finance up 17.79% – Time to Buy YFI Coin?
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Yearn Finance has managed to stay bullish in a largely bear market, pushing investors to buy YFI.
Yearn Finance continues to push its way up north, winning against the bears. The asset is in a good position to establish a new resistance level after breaking through previous support levels.
Yearn Finance is a protocol that operates on the Ethereum blockchain that allows users to earn the highest possible yield by locking their cryptos in s practice termed yield farming. Users earn YFI tokens by locking cryptocurrencies in with Yearn Finance.
To ascertain if this is the right time to buy YFI, we need to examine the technical and fundamental performance of Yearn Finance.
Yearn Finance Bullish In A Largely Bear Market
The broad crypto market remains on a steep decline, as most digital assets, including market leaders like Bitcoin and Ethereum, continue to trade in the red zone.
The crypto market is now valued at $2.18 trillion, a 3.14% decline in the last 24 hours. However, aggregator service for decentralised Finance (DeFi) investors, Yearn Finance, has remained an outlier, trading at $24,941.77, up 17.79% in the last 24 hours.
YFI is also on the rise on the weekly margins, gaining 25.74% in the last 7 days.
Yearn Finance has a market cap of over $926.9 million, up 17.79% in the last 24 hours.
The 24 hours trading volume of the digital asset is in excess of $445.2 million, up 108.83% in the last 24 hours. This huge inflow of funds into Yearn Finance indicates that investors are rushing to buy YFI.
Yearn Finance has notched up 16.88% year-to-date (YTD), but the yield-farming protocol has lost 4.85% in the last year.
Yearn Finance attained an enviable height in May 2021, when the ERC-20 token raised to an all-time price of $90,786.89.
Yearn Finance Technical And Fundamental Analysis
Yearn Finance, the digital currency that aims to bring simplicity to DeFi investment like yield farming, is currently trading above the 20-day moving average (MA) support price of $23,799.40, indicating that YFI is on a bullish run.
However, the 200-day MA support price of $33,194.78 tells a different story, pointing that the crypto asset is on a bearish run.
However, this data should not deter investors, given that Yearn Finance holds a crucial space in the DeFi aggregating sub-sector, and investors can easily buy YFI for a bargain.
The Relative strength index (RSI) of $48.65 shows that YFI is trading in the under-bought region.
The moving average convergence divergence (MACD) has the green indicator trendline soaring above the orange indicator, signalling a buy order. This figure presents investors with an opportunity to buy YFI and ride with the market.
Meanwhile, Yearn Finance recently launched a massive YFI buyback program to distribute earnings to token holders. Yearn Finance has decided to revisit the tokenomics of its native token, YFI.
As of December 16, Yearn Finance has purchased over $7.5 million worth of YFI from the open market. The protocol announced that they got 282.4YFI (representing 0.77% of total supply) at an average price of $26,651.
If more YFI is continuously bought back, this will surely make for a price rally in the coming days.
Yearn Finance has also been entering into strategic partnerships to see the ERC-20 token gain more traction in the market. Yearn Finance’s new partnership is with the Oredo network. Users can now store, make instant transfers, and carry out atomic swaps of YFI tokens on the Oredo network.
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