Yearn.finance mergers and sideways Bitcoin price propel DeFi tokens higher

Yearn.finance has been decorated announcing a slew of mergers in the past week, and these have the decentralized finance space buzzing in one case once again. Just afterward the Yearn and Pickle Finance merger, Yearn has announced a partnership with Cream to launch Cream v2.

Some of the key takeaways are that teams from both protocols will merge their development resource and Yearn vault shares can be kept as a collateral to borrow on Cream. Yield farmers might likewise benefit as Yearn vault strategies will have access to leverage through Foam.

The collaboration has too planned several releases for the hereafter. Cream will launch Stable Credit, the proposed lending platform being built past Yearn and a zero-collateral protocol credit solution is too in the pipeline.

*Crypto market data daily view. Source:* *Coin360*

Yearn.finance founder Andre Cronje also announced a merger with SushiSwap on December. 1, describing it as "one of the more ambitious synergies." The core items volition be put up for a vote via governance to make it official.

While both tokens and governance volition remain split, each project plans to concur each other's tokens in their treasuries.

Both teams will merge evolution resource and their liquidity pools into a single lending pool that volition boost the total value locked.

Ultimately, SushiSwap will become the automated market maker of choice for Yearn'southward yield farming strategies and Yearn will help create xSushi vaults to farm SUSHI, Ether (ETH), YFI and Wrapped BTC (wBTC).

The news of mergers and aquisitions led to a strong rally in several DeFi tokens, but can they continue their journey higher?

Let's analyze the charts of the height three movers to discover out.

YFI/USD

YFI rallied from an intraday depression at $18,228.60 on Nov. 26 to an intraday high at $31,780.41 on December. 2, a 74% gain within a short menses. This shows that the investors accept cheered the flurry of fundamental news of the past few days.

Both moving averages are sloping up and the relative strength index (RSI) is shut to the overbought territory, which suggests a bullish tendency. The YFI/USD pair may rally to the overhead resistance at $34,204.24 where the bears are probable to mountain a stiff resistance.

However, if the bulls do not give up much basis or buy the dip to the 20-day exponential moving boilerplate ($23,926), it volition increase the possibility of a break above the overhead resistance.

On a close to a higher place $34,404.24, the next leg of the up-move to the best loftier at $43,966.31 could start. If the bulls can drive the toll to a higher place this level, the pair could rally to the $l,000 psychological resistance.

This bullish view will be invalidated if the pair turns downward from the current levels or the overhead resistance and breaks below the xx-twenty-four hours EMA. In such a case, a few days of range-bound action is possible.

SUSHI/USD

SushiSwap's SUSHI witnessed a 144% rally from the Nov. 26 intraday low at $0.9758 to the Dec. two intraday high at $2.3861. The token has started a new uptrend, every bit seen from the higher loftier and higher low formation.

Both moving averages have turned upwardly and the RSI has jumped into the overbought territory. During the initial phases of an uptrend, if the RSI stays above 70, it suggests strong buying interest and is by and large considered equally a sign of strength.

The first target on the upside is $2.65. The bears may endeavor to stall the rally at this level, but if the SUSHI/USD pair stays above the 20-day EMA ($one.50), information technology will increment the possibility of a suspension above the resistance.

In that location are several small-scale resistance levels between $2.65 and $3.50. These could human activity equally speed breakers resulting in heightened volatility. Nevertheless, if the bulls tin can clear the $3.50 resistance, the next target is $5 and then $9.

This positive view will be negated if the bears sink the price below the twenty-mean solar day EMA. Such a motion will suggest that the bears are not ownership the dips anymore, as they await the cost to autumn further.

CREAM/USD

CREAM has been on a stellar run from the intraday low of $38 on Nov. 26 to the Dec. 3 intraday high at $92, a 142% gain during the short span.

The toll turned downwards sharply from $95 on Nov. one and from $92 on November. 26. Hence, the bears are again probable to defend the $92 to $100 overhead resistance zone.

Withal, if the bulls can propel the cost above $100, the CREAM/USD pair could rally to $130 and then to $160. The rising xx-day EMA ($57) and the RSI in the overbought territory propose that bulls are in control.

Contrary to this supposition, if the toll turns down from the current levels, information technology could dip to the 20-twenty-four hour period EMA. If the bulls buy the dip to this back up, it will suggest that the sentiment remains positive and the bulls are accumulating at lower levels.

If the pair rebounds off the 20-day EMA with strength, the bulls will again try to push the price above the overhead resistance zone. Conversely, if the bears sink the toll below the 20-twenty-four hours EMA, the pair could drop to the 50-day unproblematic moving boilerplate ($43).

The views and opinions expressed hither are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves run a risk, you should comport your own research when making a determination.