21.4 C
New York

Technical Pattern Suggests YFI Could See Massive Breakout: Analysis

Date:

ADVERTISEMENT

The new technical pattern suggests YFI could see a huge breakout soon as the price was consolidating in the mid -$20,000 region over the past few weeks with the recent parabolic surge from the low levels of $7500 as the coin got a little overheated after it hit the $30,000 level so let’s read more in today’s Altcoin news.

YFi was consolidating and is now gearing up for another round of volatility as it is trading range grew narrower by the day. Some positive underlying development were backing the increase with the ecosystem’s founder teasing the release of the decentralized options contracts as well as the yields in the yVaults rocketing higher in the past few weeks. With the DeFi trend kicking in, the trading volumes on decentralized exchanges increased and now there are even bigger changes that the yVault yields will continue increasing and will boost the underlying value of the YFI token.

yfi usd
Image Courtesy of Crypto Rand. Source YFIUSD on TradingView.

Furthermore, the resurgence in speculative investing boosted the crypto asset and most of the Defi tokens were seeing large inflows of capital. As long as the trends continue, Yearn.Finance’s YFI token could see continued upside in the upcoming days and weeks ahead. At the time of writing, YFI is trading down marginally with a current price of $24,000. YFI is around the price at which the crypto was trading over the past few days. The selling pressure was seen at $28,000 and proved to be intense as it could slow its growth in the mid-term. Until YFI surpasses this level, the cryptocurrency will continue facing intense sideways trading.

yfi daily
YFI 24-Hour Price Chart (Source: coingecko)

Once this level is broken, YFI will start increasing higher and potentially will target the all-time high in the mid -$40,000 region. One trend that is working in the bull’s favor is that the crypto asset is pinched in the apex of a bullish triangle formation. One analyst even explained that he is watching for a bullish break above the triangle which will make the cryptocurrency enter a full bullish mode:

ADVERTISEMENT

 “YFI squeezing, breakout would make out full bullish.”

Ethereum’s price action was guiding that of the DeFi sector so YFI could show continued signs of near-term strength for most tokens like YFI’s push higher. The technical pattern suggests that YFI will push higher and if ETH holds $600, the altcoin could be well-positioned to see an immense surge higher in the upcoming days and weeks ahead.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/altcoin-news/technical-pattern-suggests-yfi-could-see-massive-breakout-analysis/

Related articles

spot_img

Recent articles

spot_img