• Yearn Finance price posts a spectacular 103% gain in just five trading days.
  • Oscillators values indicate significant overbought levels have been reached.
  • Technical breakout within the Ichimoku system could push YFI higher before any selling pressure occurs.

Yearn Finance price has undoubtedly been one of the biggest surprises of the cryptocurrency space over the past two years. Easily one of the best performers of 2020 and 2021, sentiment and attraction for YFI waned after the May 2021 selling. As a result, six months of consolidation may be coming to an end.

Yearn Finance price gains over $19,000 since November 15, triggering massive overbought conditions

Yearn Finance price action has been almost singular in its performance over the last five trading days. The results of that spike have generated some significant overbought warning signals in all three of the oscillators.

The YFI price spike has put the Relative Strength Index above the last overbought level in a bear market (65), creating an extreme overbought level or the beginning of a transition from a bear market to a bull market. In addition, the Composite Index has printed a new all-time high while also printing hidden bearish divergence between the two peaks of the prior highest high on May 11 to today. Finally, the Optex Bands have reached into extreme overbought territory and have printed a new all-time high as well.

Speculators will raise the most crucial question: Is YFI overbought, or is it positioning for another drive higher? From an Ichimoku perspective, if Yearn Finance can close above $35,600, YFI will have completed all conditions needed for an Ideal Bullish Ichimoku Breakout entry. This would be a massively bullish event as the last time Yearn Finance completed that entry criteria was on April 4.

 

YFI/USDT Daily Ichimoku Chart

Key resistance levels to watch in the near future are the 61.8% Fibonacci retracement at $40,825 and the 88.2% Fibonacci retracement at $64,556. If bulls cannot close Yearn Finance price at or above the 61.8% Fibonacci retracement, a return to the $30,000 value area is likely.

To maintain a bullish outlook, bulls will need to keep Yearn Finance price at a level where the daily close and the Chikou Span are above the Cloud – no lower than $35,500.


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


Recommended Content

Editors’ Picks

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead. 

More Bitcoin News
GIGA investor loses $6M to phishing scam via fake Zoom link

GIGA investor loses $6M to phishing scam via fake Zoom link

On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.

More Cryptocurrencies News
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.

More Cryptocurrencies News
BNB: Bullish technical pattern validated, eyes all-time high

BNB: Bullish technical pattern validated, eyes all-time high

Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.

More Binance News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP