Yearn.finance’s YFI token has seen massive gains from its multi-month lows of $7,500 set just a few weeks ago.
The strength it has expressed since it drifted towards these lows has been impressive, with bulls laying a strong base of support within the lower-$20,000 region. It has yet to break below this level but is still struggling to shatter the selling pressure that sits around $30,000.
Where it trends in the mid-term may depend largely, if not entirely, on its continued reaction to the selling pressure that exists here.
Despite the bullishness seen by both ETH and Bitcoin, DeFi altcoins like YFI have yet to see any massive momentum.
The DeFi sector may be one of the last ones to rally, with investors mainly focused on Bitcoin and major altcoins over the past few days and weeks.
One trader is now noting that Yearn.finance’s governance token is currently building a strong base of support just below its current price level. This could allow it to see some notable momentum in the coming days.
As for where it may trend first, he is pointing to $29,300, noting that the selling pressure at its range highs might be the first hurdle for it to surmount.
It remains unclear how long the DeFi sector will underperform Bitcoin and Ethereum, but as Yearn.finance’s YFI has become a benchmark for the space, it will likely be one of the first major DeFi coins to move.