Yearn.Finance (YFI) is showing strong bullish signs after rebounding from its December lows but needs to break the current pattern to confirm a bullish reversal.
YFI has been trading above the horizontal support area of $ 27,200 since early May. Additionally, it has surfaced along with a rising support line.
The price broke that line on November 28th (red circle) and continued to hit a low of $ 17,699 on December 4th.
However, YFI started a rapid uptrend on December 15th and hit both the USD 27,200 area and the ascending support line the next day. This is an extremely bullish signal as it shows that the previous breakout was just a divergence.
The technical indicators are also increasing, which supports the continuation of the uptrend.
MACD has entered positive territory. This is a signal of an uptrend as the short term MA is moving faster than the long term MA.
The RSI is at 50, which is also a sign of bullish momentum.
Hence, the daily time frame shows that the trend is up and the YFI will continue to rise.
Daily YFI / USDT Chart | Source: TradingView
Short term movement
The 12-hour chart shows that YFI is currently trading very close to the resistance line of the descending parallel channel. Such a canal usually contains corrective movements, which means that in most cases there will be a breakout.
YFI needs to consolidate further above the centerline of the channel for a breakout to get higher.
YFI / USDT 12-hour chart | Source: TradingView
If there is a breakout, the closest resistance is at $ 43,000, with resistance above it at $ 65,750. The latter zone coincides with the weekly close of the all-time high in May and the 0.618 Fib retracement area. Hence it will be a very strong resistance.
Weekly YFI / USDT Chart | Source: TradingView
YFI / BTC
Trader @CryptoNTez outlined the YFI / BTC chart and noted that the pair has risen 100% since the December lows.
The source: Twitter
The YFI / BTC chart is also showing an uptrend as it shows that the pair has broken out above a descending wedge. It did so on December 16 and hit a high of 0.84 yen three days later.
There is strong resistance at ₿0.86. If YFI / BTC breaks this level, the rate of increase is likely to be faster.
Daily YFI / BTC chart | Source: TradingView
You can see the YFI prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.