Your favorite crypto news blog

Bullish Indictor Prepares Yearn Finance (YFI) For Record High; Here’s How

Other 2020/11/30 14:38 by Yashu Gola

According to a textbook bullish indicator, Yearn Finance’s governance token YFI is preparing to target its all-time high.

Dubbed as “Ascending Triangle,” the pattern envisions YFI/USD just shy of $44,000, a record high achieved mid-September following the pair’s supersonic bull run. It anticipates YFI/USD to hold support near its ascending trendline while testing its horizontal base level as resistance.

Later, the pattern expects the pair to attempt a breakout move above the resistance level.

YFI, YFIUSD, YFIBTC, YFIUSDT, cryptocurrency

Yearn Finance Ascending Triangle pattern (in black). Source:  YFIUSD on TradingView.com

In retrospect, the Ascending Triangle is a continuation pattern that appears in the middle of a trend. Traders anticipate the market to continue in the direction of its previous trend. Therefore, they develop their trade setups accordingly.

YFI is in an uptrend. And it is now forming a rising lower trendline and a flat upper trendline. It indicates that the buyers — at present — are more aggressive than the sellers. Their continued testing of the resistance trendline weakens the level. So eventually, YFI will breakout to the upside.

Technically, the breakout’s extent will depend on the maximum height between the upper and the lower trendline. In YFI’s case, it is close to $15,000. Therefore, the Ascending Triangle’s breakout target is about $15,000 above the resistance trendline. That is just shy of $44,000 — as stated above.

Conflicting YFI Setup

As bulls eye a record high for the Yearn Finance token, they may avoid a bearish reversal pattern developing right around the Ascending Triangle.

Dubbed as Head and Shoulder, the pattern sees YFI/USD trading upward towards the $30,000-32,000 range. But thereon, it expects the pair to reverse its trend entirely to retest its neckline (the ascending trendline in black) for a negative breakout move.

YFI, YFIUSD, YFIBTC, YFIUSDT, cryptocurrencyYearn Finance Head & Shoulder pattern. Source: YFIUSD on TradingView.com
Yearn Finance Head & Shoulder pattern. Source: YFIUSD on TradingView.com

Like in the Ascending Triangle’s case, a breakout’s target in Head and Shoulder is as far as the maximum height of the pattern. That roughly puts the YFI/USD en route to $14,729.

0 Like(s)

You should also read...

Bitcoin 12/06/20 13:00 by Yashu Gola
70% Chance Bitcoin Reclaims $11.8K by July 2020; Here’s Why
Bitcoin rallied Friday, reversing a minor portion of its losses incurred during the yesterday’s sell-off. The cryptocurrency retraced upward from a convincing support trendline. It now appears ...
Read More
Altcoins 17/09/20 15:00 by Yashu Gola
Ethereum Risks Plunging Towards $350 Following Rejected Spikes
A string of back-to-back upside rejections at a local top is putting Ethereum at risk of correcting lower towards $350. Looking at ETH/USD 1H chart shows the pair attempting to close above $384, a res...
Read More
Other 19/10/20 13:04 by Yashu Gola
Why a Technical Analyst is Predicting a Sub-$8K Yearn Finance (YFI) Crash
More warnings flashed for Yearn Finance’s governance token YFI even as it showed signs of recovering after an upside weekend session. Market analyst Teddy Cleps envisioned a waterfall-like trend...
Read More
Bitcoin 26/10/20 12:04 by Yashu Gola
Analyst Calls for Yearn Finance (YFI) Rally on Bitcoin’s Stabilization Signals
As Bitcoin catches a break after exploding above $13,000 last week, it’s mid-cap rival Yearn Finance (YFI) is looking to rally higher. The prediction comes from a pseudonymous analyst on Twitter...
Read More
Other 30/10/20 11:49 by Yashu Gola
Yearn Finance (YFI) Slips Below $10K in DeFi Bloodbath; Breakout Ahead?
A splendid beginning for Yearn Finance in the third quarter is coming to an end with a brutal sell-off. The yield farming aggregator suffered a major blow this week as its governance token, YFI, plung...
Read More