In a week where cryptos have mixed returns, Yearn.Finance YFI/USD is among a few with strong gains. With 44% 7-day returns, the token is only rivaled by Filecoin and Optimism in the top 100 coins. The gains are even more remarkable because YFI has overcome a crucial bottom. Does that set it on course to replicate the gains of last year?
Yearn.Finance runs on the Ethereum blockchain. The protocol has carved a name in crypto by arbitraging diverse lending platforms. They include Compound, Aave, and dYdX. It maximizes returns for the users by selecting the platforms with the most favorable rates. Users also earn YFI tokens by staking on the protocol. Users can lock more crypto assets through “yield farming” to raise their earnings.
The latest gains in YFI underline that investors believe DeFi is the future. Other DeFi platforms such as Aave and Compound have been rising by double digits. It was just a matter of time before Yearn-Finance followed.
Source – TradingView
YFI has met resistance at $12,400 following the latest gains. The token is sliding and currently trades at $10,630. The MACD indicator is bullish, but the momentum is waning.
We believe YFI will correct as investors take profit at the resistance zone. However, with the token well above key resistance at $7,250, it is on course to hit higher levels. The cryptocurrency could correct to the support or the moving averages. Investors should sell and consider buying lower.
YFI has gained by 44% in a week. Investors are taking profits after the token hits the resistance. Investors should buy the token once it settles at suitable support.
The post What next as Yearn.Finance token shoots 44% in a week? appeared first on CoinJournal.
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