Cream Finance up 93% in two days riding on news of Iron Bank token airdrop

Key Takeaways:

• Cream Finance’s native token CREAM touched $80 after a 115% rally since Jan 10.
• The uptrend likely took cues from the upcoming Iron Bank token airdrop.

NEW DELHI (CoinChapter.com) — Decentralized lending protocol Cream Finance’s native token registered a massive 115% rally in three days to go from $37.1 on Jan 10 to a high of $80 on Jan 13. The token survived the recent US inflation-fueled crypto bear market, seeing Bitcoin lose 10% of its value.

Although the Cream token was bullish on the short-term time horizon, trading above its 50-day MA line, CREAM’s 53.5% jump on Thursday carried prices above its 100-day trendline as well. As such, the Cream token prices are currently bearish only in the long-term time frame.

Immediate resistance for CREAM is at $82. However, the further upside could see the Cream token price reaching $93.5. Moreover, a sustained uptrend could see CREAM move above $100 to challenge resistance at $106 before pullbacks occur.

However, the relative strength index is well into the overbought region, clocking 85.47 on the daily charts. As such, CREAM’s uptrend is likely to reverse soon. To recap, an overbought RSI usually indicates an asset’s uptrend is likely to reverse soon.

Also Read: Yearn Finance (YFI) price jumps 51% in five days, but selloff risks mount.

If the uptrend reverses, CREAM could seek support near $61.5. Moreover, as retail traders move in to profit from the Cream finance token’s recent uptrend, prices could fall to $54.5. Finally, a sustained sell-off could push prices to $47 before CREAM can recover.

Meanwhile, trend-based momentum oscillator MACD continues to be bullish for CREAM. The Cream Finance token has had a bullish MACD momentum since Nov 24. Moreover, bars on the MACD histogram are expanding, indicating strengthening bullish momentum for CREAM.

In detail, the MACD histogram plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD).

Cream Finance Fundamentals

Cream Finance is a decentralized lending protocol part of the Yearn Finance ecosystem. It is a permissionless, open-source, and blockchain agnostic protocol. The latest bullish tailwinds for Cream Finance come from the Iron Bank’s recent announcement of an airdrop of IB tokens.

The Iron Bank is the new protocol front-end for the central bank of Yearn Finance. Andre Cronje, ve(3,3) tokenomics and Yearn Finance founder, created the Iron Bank. The protocol powers many of the highest yield pools on Convex Finance. Iron Bank mints ib-tokens, ‘Iron Bank’ labeled token minted from various sources.

As per the latest Iron Bank announcement, CREAM token holders would receive IB token distribution. The airdrop would come in the form of ‘4-year locked veIB on Fantom Opera.‘ Users who stake their CREAM tokens for an extended lock-in period would be eligible for the airdrop.

Also Read: Cream Finance DeFi protocol loses over $18 million in latest attack.

In addition, users who stake iceCREAM tokens for at least one year to the snapshot date (Jan 27) would also be eligible for the airdrop. The promise of airdropped tokens has likely led to the soaring demand for CREAM tokens.

CREAM was trading at $72.01, up 31.74% on the day at writing.