YFI could dump again if this resistance is not flipped into support

By John Isige
October 14, 2020 Updated October 14, 2020
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  • immediate upside capped by the 50 SMA as bearish pressure intensifies.
  • On-chain analysis suggests that the path with the least hurdles is downwards. has lost a great deal of its value since it traded an astronomical all-time high of $44,000. The 4-hour chart illustrates the several attempts made to regain the lost ground. However, buying pressure has continuously been thwarted. The biggest blow was the recent slide to $12,000. Luckily, buyers came to the rescue of the decentralized finance token.

A recovery ensued and tested the crucial level at $20,000. Several other critical zones remained unconquered, including the 50 Simple Moving Average (SMA), the long-term descending trendline, and the 100 SMA in the 4-hour timeframe. retreated again but this time, support seems to have been embraced above $15,000. The Relative Strength Index (RSI), nonetheless is forming a lower higher pattern, bringing into the picture the hovering selling activities.

YFI/USD 4-hour chart

YFI/USD price chart
YFI/USD price chart by Tradingview

It is essential that the 50 SMA resistance is broken soon to allow bulls to shift the focus to $20,000. However, the sellers’ grip is likely to continue intensifying putting more pressure on the short-term support at $15,000. Support at $12,000 is still intact and would hold in case an extended or sharp reversal comes into the picture.

IntoTheBlock’s IOMAP chart confirms the possible bearish scenario by revealing intense supply areas towards $20,000. The largest resistance zone runs from $16,363 to $16,831, where 46 addresses previously purchased 3,900 YFI.

On the downside, is accorded relatively weak support as observed from the model. However, the strongest buyer congestion zone runs from $14,448 to $14,916. Here, 266 addressed previously purchased roughly 613 YFI. Key Levels

Spot rate: $15,790

Relative change: 124

Percentage change: 0.84%

Trend: Bearish bias

Volatility: Low


John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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