- Yearn Finance price faces an $8,500 drop to return to $25,000.
- Resistance within the Ichimoku system corroborates weakness on the Point and Figure chart.
- Upside potential does remain but is likely limited.
Yearn Finance price action is developing a particularly bearish chart pattern in the form of a head-and-shoulders pattern on its $250/3-box reversal Point and Figure chart, warning of a nearly 25% drop coming up.
Yearn Finance price to top out against crucial resistance levels and eyes a significant drop soon
Yearn Finance price has been stuck inside the Ichimoku Cloud on the daily chart since December 22. The range and bodies of those daily candlesticks have mostly been confined to the bounds of the top and bottom of the Cloud. Today, YFI is testing the top of the Cloud (Senkou Span B) at $33,750.
Bulls will likely face some difficulty pushing Yearn Finance price higher. The 50% Fibonacci retracement, Senkou Span B, and daily Tenkan-Sen reside within the $33,500 to $34,750 value area. Combining those three price levels form considerable resistance to any further movement higher.
The oscillators also hint at continued difficulty moving higher for Yearn Finance price. The Optex Bands have developed a relatively extreme slope, warning of extreme overbought conditions getting hit soon. The Relative Strength Index remains in bear market conditions and oscillates between the two overbought levels in a bear market (65 and 55). The RSI is barely staying above the first overbought level at 55.
YFI/USDT $250/3-box Reversal Point and Figure Chart
It is expected that Yearn Finance price action will be constrained to the top and bottom of the Cloud. If YFI continues to follow the Cloud, traders should expect a fast drop between December 28 and December 29 below the neckline of the head-and-shoulders pattern on the Point and Figure chart to the bottom of the daily Cloud at the $25,000 value area.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.