- Desire. Financing arbitrage lending platforms for the best rates
- Yearn.Finance token is up 44% in a week.
- The cryptocurrency has encountered resistance and investors should be looking at lower levels.
In a week where cryptos have mixed returns, Yearn.Finance YFI/USD is one of the few with strong gains. With 44% 7-day returns, the token is only matched by Filecoin and Optimism in the top 100 coins. The gains are even more remarkable as YFI has overcome a crucial bottom. Does that put it on track to match last year’s gains?
Yearn.Finance runs on the Ethereum blockchain. The protocol has made a name for itself in crypto by arbitrating various 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 in more crypto assets through “yield farming” to increase their earnings.
The latest gains in YFI underscore that investors believe DeFi is the future. Other DeFi platforms like Aave and Compound are up double digits. It was only a matter of time before Yearn-Finance followed suit.
Yearn.Finance Meets Resistance After Weekly Gains
Source – TradingView
YFI has encountered resistance near $12,400 after its latest gains. The token is sliding and is currently trading at $10,630. The MACD indicator is bullish, but momentum is waning.
We believe YFI will correct if investors make gains in the resistance zone. However, with the token well above the key resistance of $7,250, it is on track to reach higher levels. The cryptocurrency may correct for the support or the moving averages. Investors should sell and consider buying lower.
YFI is up 44% in a week. Investors take profits after the token hits resistance. Investors should purchase the token once it is settled with suitable support.