Yearn.finance has been very busy for the past week announcing a large number of mergers that will bring the decentralized finance ecosystem back into fashion. Right after the merger of Yearn and Pickle Finance Yearn announced a partnership with Cream to release Cream v2.
Some of the key points are that the teams from both protocols merge their development resources and the shares of the Yearn vault can be kept as security for the loan at Cream. High yield farmers could also benefit as Yearns vault strategies have access to leverage through Cream.
The collaboration has also planned several releases for the future. Cream will launch Stable Credit, the proposed loan platform that Yearn is building, and is also preparing a loan solution with a zero guarantee protocol.
The founder of Yearn.finance, Andre Cronje also announced that his project would merge with SushiSwap on December 1st, describing it as “one of the most aggressive synergies”. The core elements are put to a vote through governance to make them official.
Although both tokens and the government will remain separate, Each project plans to keep each other’s tokens in their treasures.
Both teams will merge their development resources and liquidity pools in a single pool of credits that increases the total blocked value.
Finally, SushiSwap will become the automated market maker of choice for Yearns income breeding strategies, and Cronje’s project will help create “xSushi” vaults for the growth of SUSHI, Ether (ETH), YFI and Wrapped BTC (wBTC)..
News of mergers and acquisitions sparked a strong rally for several DeFi tokens, but can they continue on their rise?
Let’s look at the charts of the three best tokens to find out.
YFI / USD
YFI’s price rose from an intraday low of $ 18,228.60 on November 26th to an intraday high of $ 31,780.41 on December 2nd, up 74% in a short period of time. This shows that investors have celebrated the barrage of fundamental news over the past few days.
Both moving averages are falling and the Relative Strength Index (RSI) is close to the overbought territory, suggesting that the token is in an uptrend. The YFI / USD pair could move to the overhead resistance at $ 34,204.24 where the bears are likely to build stiff resistance.
But still, Unless the bulls give up or buy much ground during the break into the 20-day exponential moving average ($ 23.926), the chances are we will see a breakout above the overhead resistance.
With a closing price above $ 34,404.24, the next phase of the uptrend towards the all-time high of $ 43,966.31 could begin. If the bulls can push the price above this level, the pair could rebound to the $ 50,000 psychological resistance.
This bullish position will be invalidated if the pair drops from current levels or from the upper resistance and falls below the 20-day EMA. In such a case, there may be a few days with limited range.
SUSHI / USD
SushiSwap’s SUSHI rose 144% from an intraday low November 26th of 0.9758 to an intraday high December 2nd of $ 2.3861. The token has started a new uptrend, which can be seen in the formation of higher ups and downs.
Both moving averages have risen and the RSI has jumped into overbought territory. If the RSI stays above the 70 level in the early stages of an uptrend, it indicates strong buying interest and is widely viewed as a sign of strength.
The first target on the upside is at $ 2.65. The bears may try to stop the rally at this level, but if the SUSHI / USD pair is above the 20-day EMA (USD 1.50) the possibility of a breakout above the resistance increases.
There are several small levels of resistance between $ 2.65 and $ 3.50. These can act as speed limits and lead to increased volatility. However, if the bulls manage to cross the $ 3.50 resistance, the next target is $ 5, then $ 9.
That positive outlook will be zero if the bears pull the price below the 20-day EMA. Such a move will suggest that the bulls will stop buying during the slump, expecting the price to continue to fall.
CREAM / USD
CREAM was well on its way from the intraday low of $ 38 on November 26th to the intraday high of $ 92 on December 3rd. a gain of 142% in a short time.
The price fell sharply from $ 95 on November 1st to $ 92 on November 26th. Therefore, the bears can defend the $ 92-100 resistance zone again.
But still, If the bulls can push the price above USD 100, the CREMA / USD pair could rise to USD 130 and then hit the USD 160 level. The rise in the 20-day EMA ($ 57) and RSI in the overbought territory suggest that the bulls are in command.
Contrary to this assumption, the 20-day EMA could decrease if the price deviates from current levels. If the bulls buy during the collapse of this support, it suggests that sentiment remains positive and the bulls are building at lower levels.
If the pair bounces sharply above the 20-day EMA, the bulls will try again to push the price above the resistance zone. Conversely, if the bears cut the price below the 20-day EMA, the pair could fall to the 50-day SMA ($ 43).
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