- Yearn finance attempts to build a breakout above the $13,000 support but hits a barrier at the 50 SMA.
- YFI/USD could resume the breakdown aiming for levels beneath $10,000 especially if the triangle support is shattered.
Yearn.finance has lost a great deal of its value since it last hit the all-time high at $44,000. Despite consistent breakdown, the decentralized finance (DeFi) still holds the status of being the most expensive digital asset to buy in the market at the moment. However, this might not stand in the long run if Bitcoin continues with the run-up to all-time highs.
Meanwhile, Yearn.finance appears to have found a bottom at $13,000. This support has been tested multiple times, all resulting in a considerable bounce upwards. The most recent reversal pulled above $14,000.
YFI is dealing with the resistance at the 50 Simple Moving Average (SMA) as well as the descending triangle hypotenuse. The price appears to be leaning on the bullish side as observed with the Relative Strength Index (RSI). Although the volume is expanding, is not enough to result in a massive spike.
YFI/USD 4-hour chart
Simultaneously, the formation of a descending triangle pattern in the 4-hour timeframe brings into the picture a possible retracement. It suggests that $13,000 is not a bottom but strong support that must be guarded at all costs. Otherwise, YFI/USD could plunge under $10,000. On the downside, $12,000 is tentative support.
It is worth mentioning the bearish outlook will be invalidated if the price shoots above the 50 SMA and the triangle resistance. Such a move is bound to attract more buyers into the market, who will add to the dwindling volume, in the end, launching the much-awaited rocket flight to $20,000 again.
Yearn.finance Intraday Levels
Spot rate: $14,030
Relative change: 305
Percentage change: 2%
Trend: Bullish bias