• 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

Polygon joins forces with WSPN to expand stablecoin adoption

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.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

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.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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