Yearn Finance, one of DeFi’s landmark projects, surged to an all-time high above $52,000 on Friday. Before correcting slightly to its current price just below $51,000. The upswing was fueled by speculation around Grayscale launching a dedicated YFI Trust.
The investment company has been active as of late with its corporate registration filings and reportedly registered a new YFI Trust earlier this week. The registration was made by Delaware Trust Company, which is Grayscale’s statutory trustee for the U.S. state. With it, the company now has 33 registered trusts in the state.
The recent filing does not necessarily mean that Grayscale will list this investment vehicle. But the news was well-received by market participants who rushed to exchanges to get a piece of the governance token.
Spike in buying pressure pushed YFI price higher than Bitcoin
As a result, the spike in buying pressure temporarily pushed the YFI price higher than Bitcoin in terms of USD value. The leading cryptocurrency is currently trading above $47,000, which is just below its all-time high of $48,000 seen earlier this week.
Given the positive effect that a Grayscale listing can have on prices. Yearn Finance could benefit from a spike in institutional demand. If this buying pressure continues, it could lead to a breakout of an ascending parallel channel.
Yearn Finance price could hit the target of $100,000
A 1-day candlestick close above the recent high of $48,230 would signal the end of the consolidation period. With the beginning of a new price discovery phase. The ascending parallel channel predicts that by breaking through the upper trendline, the Yearn Finance price could quickly double and hit a target of $100,000 before bitcoin does.
According to Santiment, YFI’s social volume adds credence to the bullish outlook. “This lack of interest is generally good especially when the project is consistently building as observed by the high dev activity. There’s probably something coming up but the crowd is probably not aware of and it’s good that they are not in yet.”
While there is plenty of reason for optimism. Investors are remaining cautious as the YFI price has been rejected twice by the ascending channel’s upper trendline.
Failing to slice through the $48,230 resistance level could trigger a sell-off. Leading to a steep correction towards support levels of $36,000 and 29,000, respectively.
YFI, the ecosystem’s native token, initially was supposed to be a governance token with no face value. However, it quickly caught speed and emerged as one of the best-performing assets in 2020.