• YFI was down 72% since its peak at $43,966 but is showing signs of a reversal.
  • The digital asset is currently trading at $18,439 after establishing a low at $12,260. 

YFI is one of the most popular DeFi projects, overtaking Bitcoin in price, but not in market capitalization, which reached $1.2 billion at its peak.

Several indicators are showing YFI is ready for a bounce

On the daily chart, the bounce seems to be underway already after a low at $12,260. 

YFI/USD daily chart

yfi price

The TD sequential indicator presented a buy signal on October 7, which seems to have been validated over the next two days with a 60% bounce from YFI. The MACD is closer to a bullish cross, but not quite yet there. 

YFI Open Interest Chart

yfi price

The average open interest of YFI on major exchanges like Binance, KuCoin, and OKEx, has increased significantly over the past 15 days. This metric represents the dollar amount of open positions and indicates that bulls are picking up steam. 

YFI Number of Large Transactions

yfi price

Using the chart provided by IntoTheBlock, we can observe a notable rise from a low of 99 transactions with a value of $100,000 or greater on October 5, to 423 transactions currently. Although an increase in large transactions doesn’t necessarily represent a bullish outlook, we can assume that most transactions were positive because of the rise in prices. 

YFI/USD 1-hour chart

yfi price

The hourly chart also flipped in favor of the bulls after climbing above the 50-SMA and then the 100-SMA and turning both into support levels. YFI has confirmed an hourly uptrend after establishing several higher highs and higher lows. 

The next target price would be the psychological $20,000 level, followed by the 50-SMA on the daily chart at $25,000.

This rejection could slow down YFI bulls

However, looking at the 4-hour chart, we see that YFI is struggling to stay above the 50-SMA.

YFI/USD 4-hour chart

yfi price

A rejection from $18,384 at the 50-SMA would be notable and likely to push YFI down, at least in the short-term.  

YFI New Addresses

yfi price

Furthermore, the number of new addresses joining the YFI network is not increasing. The peak of 1,280 on September 29 was followed by a lower high with 1,000 addresses on October 4 and only 750 currently. 

This downtrend means that new investors are not particularly interested in YFI, even after the most recent bounce. The rejection of the 4-hour 50-SMA has the potential to push the digital asset down to $15,000.

Buyers need to look out for a clear breakout above the same level to eye up $20,000 and eventually $25,000, where the 50-SMA on the daily chart is established.


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 Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

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