Yearn Finance’s governance asset, YFI, was flying north during the European session Wednesday even as the token remained under broader downside pressure.
The YFI/USD exchange rate added $430, or 3.33 percent, to grow towards $13,481 as of 1143 UTC. Its gains came as a part of a market-wide uptrend, led by Bitcoin’s surprising move above $12,000, a crucial resistance level that flipped into support. Altcoins tend to tail the Bitcoin trend.
YFI also rose as traders found short-term upside opportunities in its ongoing downtrend (71% drop from YTD high). Earlier this week, the token had plunged by as much as 22.43 percent on Binance. Its slump revived the buying sentiment, for traders expected a small upside retracement to yield attractive intraday gains.
A Strong Rebound Ahead?
The possibilities that some of those traders entered the YFI market with a medium-term risk appetite also grew. A pseudonymous analyst, who self-admittedly was short on YFI, said he would scalp his bearish positions for “oversold bounces” near $12,340.
Yearn Finance trade setup, as presented by Trading Tank. Source: YFIUSD on TradingView.com
Another cryptocurrency analyst,