Yearn.Finance Price Prediction: YFI primed to rebound towards $30,000

After posting over a 3% bearish drawdown in the last 24 hours, Yearn.Finance price is looking to print decent gains in the near term.

Yearn.Finance price flashes buy signal 

YFI price 4-hour chart generously seems to favor bulls. On a quick glance, the TD Sequential indicator setup presents a buy signal in the form of a green nine candlestick versus the greenback. 

A buy signal will be fully confirmed when a green two candlestick prints a longer denomination than the preceding green one candle. If this were to happen, Yearn.Finance price will likely rebound from the lower edge of a parallel channel that developed since December 11. 

Such market behavior could lead to a breakout to the channel’s middle or upper boundary. These resistance levels sit at $29,000 and $31,000, respectively. 

YFI/USD 4-hour chart

The Relative Strength Index (RSI) is trending below the 40 level. Historically, this has triggered a positively galvanizing price action for the most valuable yield farming token.

YFI/USD 4-hour chart

The current bottoming of RSI also points to a near-term upsurge. If a price breakout indeed follows, it would lead to this index rallying beyond the 60 mark. 

Support and resistance levels to keep an eye on

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that the largest chunk of buyers bought YFI in the $25,468 to $26,233 range, at an average price of $25,913. Over 980 unique addresses are holding a total of 5,880 YFI around this level.

YFI's IOMAP by IntotheBlock

Given the high demand at $25,913, it can be considered a crucial psychological support barrier for Yearn.Finance price. As long as YFI manages to hold above this level, the odds will favor the bulls. But if it fails to do so, the DeFi token may take a nosedive towards the next support hurdles $23,800 or even $22,100.