YFI Token Price Analysis: Descending Trendline Threatens Another Fall In Yearn.finance

By Brian Bollinger
December 19, 2021 Updated December 19, 2021
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YFI Token Price Analysis: Descending Trendline Threatens Another Fall In Yearn.finance

The overall trend for the YFI token is still bearish. However, the recent bounce back from the $18300 support caused a considerable rally of 73% in this token. The reason for this sudden price pump would be the Yearn Finance Buy-Back Program, where it purchased 282.40 YFI (worth $7.5 million) from the open market for an average of $26,651 per token.

YFI/USD Daily Time Frame Chart

YFI Token Price Analysis: Descending Trendline Threatens Another Fall In Yearn.finance

Source- YFI/USD chart by Tradingview

Past Performance or Trend

After the crypto market bloodbath of May ’21, the YFI token price entered into a sideways trend. This lateral movement in price gave birth to a descending triangle pattern in the daily time chart. On December 4th, the token gave a bearish breakdown from this $25000-$25650 neckline, hinting at a stronger downfall in the price.

Token Experiencing Strong Resistance From The Descending Trendline

This new red rally in YFI token price found significant support from the $18500 mark. The price wavered near this support for a couple of days, and after obtaining enough buying pressure, the coin skyrocketed, indicating a 73% gain in five trading days.

The token price retested the overhead resistance trendline of the triangle pattern, which still provides strong rejection to this pair. The current price of the token is $31944.5, with an intraday loss of 4.98%. If the price drops below this near support, the price will continue to fall and soon rechallenge the $26000 support.

On the contrary, Until the price sustains the nearest support from the $30500, the crypto traders can expect a bullish breakout from the falling trendline.

Technical indicators

The YFI token shows a bearish alignment among the crucial EMAs (20, 50, 100, and 200), indicating a strong downtrend.

The daily Relative Strength Index (62) displayed a strong spike in its value, similar to the token’s price action.

According to traditional pivot levels, the token traders can expect the nearest resistance for the price at $35000, followed by $40000. As for the opposite end, the support levels are $31200 and $26152.

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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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