Yearn.finance Price Prediction: YFI rekindles the bullish flame, aiming for $40,000

Some people say that the ship that is carrying some decentralized finance tokens like Yearn.finance already sailed. Yearn.finance has, in a short time, made a name for itself in the cryptocurrency industry by becoming the most expensive digital asset, overshadowing Bitcoin’s all-time high of $20,000.

The daily YFI/USD shows that since the DeFi darling token commenced trading on Binance, in August, it has rallied over 80%. An all-time high was traded at $40,000 on August 31, pausing the majestic and drastic price rally. A breakdown followed, forcing the price to plummet massively below $20,000. Support established at $17,800 allowed buyers to find balance and relaunch the ongoing bullish action above $30,000.

YFI/USD daily chart

Yearn.finance network development update

The meteoric growth of the YFI token has put the network on everyone’s radar. Participants in DeFi and the entire cryptocurrency industry want to know what the team at Yearn.finance is doing in terms of development. Can they keep the network at per with other DeFi projects such as Aave, Maker, Compound, and Balancer?

According to Yearn.finance's Twitter feed, the team recently updated the token’s dashboard. Users can now see what is happening with their portfolios in different timeframes; daily, weekly, and even yearly growth. The update ensures that users can manage their vaults and maximize opportunities to earn allocation comfortably. Yearn.finance also updated the insurance cover for users earning with various DeFi tokens such as UMA, Uniswap, Synthetix, dForcenet, and Opyn.

https://t.co/enY8w7wIwG updated;

Cover added for;@dForcenet@mstable_@opyn_@UMAprotocol@UniswapProtocol@synthetix_io

If you are earning with uniswap LP tokens, be sure to ensure your funds by selecting @UniswapProtocol pic.twitter.com/JbDxlYICVS

— yearn.finance (@iearnfinance) September 7, 2020

Yearn.finance technical analysis

YFI is dancing above $30,000, but it is essential to note the volatility is extremely high. In other words, the price could easily swing up to $40,000 just as fast as it can swing down to $20,000.

However, the 4-hour chart highlights the 61.8% Fibonacci retracement level of the last swing high to $40,000 and a swing low to $11,845 as the initial support. From a technical perspective, YFI/USD is in a bullish phase.

YFI/USD 4-hour chart

The Relative Strength Index (RSI) is almost crossing into the overbought region. The 50 Simple Moving Average position above the 100 SMA in the 4-hour range is another bullish indicator. In other words, YFI is likely to move upwards towards $40,000 in the current session.