- YFI is currently trading at $14,447 and has broken out of a significant 12-hour chart pattern.
- Continuation of the recent bullish breakout can drive YFI towards $20,000.
YFI has been trading inside a massive downtrend since September 12 and formed a head and shoulders pattern that broke bearishly. After losing close to 70% of its value over one month, the digital asset seems ready for a massive rebound.
Can the breakout be sustained?
On the 12-hour chart, a descending triangle formed since October 8 has just been broken. Although YFI hasn't seen a lot of continuation just yet, the breakout is notable. The MACD has remained bullish since October 8, and the RSI is not even close to overextension.
YFI/USD 12-hour chart
It also seems that the Bollinger Bands have squeezed significantly over the past three days, indicating that a major move is underway. Before the final price target of $20,000, bulls are eying up $17,000, which is the 50-SMA on the 12-hour chart.
YFI Holders Distribution
Additionally, looking at the holders distribution chart provided by Santiment, we can observe a decent spike in the number of whales holding between 100 and 1,000 coins, jumping from 14 on October 16 to 18 currently. This metric adds even more fuel to the recent bullish breakout.
The other side of the coin
Despite the bullish breakout above the descending triangle pattern, bulls are still facing some hurdles above. The 4-hour chart shows a strong resistance level in the form of the 100-SMA at $15,000, which almost coincides with the upper Bollinger band.
YFI/USD 4-hour chart
The 100-SMA has rejected the price already, which is now trying to hold the 50-SMA. A breakout below the 50-SMA at $14,000 could drive YFI down to the support level at $13,000, which coincides with the lower Bollinger band.
YFI IOMAP Chart
The In/Out of the Money Around Price chart shows very little support to the downside compared to the resistance ahead. The most notable support level is around $14,000, which supports the theory that a breakout below this point would be substantial.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
![Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
![Bitcoin price falls amidst German government transfers, miners activity](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
![Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
![Three reasons why altcoins could shake off losses this week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.