YFI Token Price Analysis: Descending Trendline Threatens Another Fall In Yearn.finance
The overall trend for the YFI token is still bearish. However, the recent bounce back from the $18300 support caused a considerable rally of 73% in this token. The reason for this sudden price pump would be the Yearn Finance Buy-Back Program, where it purchased 282.40 YFI(worth $7.5 million) from the open market for an average of $26,651 per token.
YFI/USD Daily Time Frame Chart
Source- YFI/USD chart by Tradingview
Past Performance or Trend-
After the crypto market bloodbath of May ’21, the YFI token price entered into a sideways trend. This lateral movement in price gave birth to a descending triangle pattern in the daily time chart. On December 4th, the token gave a bearish breakdown from this $25000-$25650 neckline, hinting at a stronger downfall in the price. YFI token Experiencing Strong Resistance From The Descending Trendline
This new red rally in YFI token price found significant support from the $18500 mark. The price wavered near this support for a couple of days, and after obtaining enough buying pressure, the token skyrocketed, indicating a 73% gain in five trading days.
The token price retested the overhead resistance trendline of the triangle pattern, which still provides strong rejection to this pair. The current price of the token is $31944.5, with an intraday loss of 4.98%. If the price drops below this near support, the price will continue to fall and soon rechallenge the $26000 support.
On the contrary, Until the price sustains the nearest support from the $30500, the crypto traders can expect a bullish breakout from the falling trendline.
The YFI token shows a bearish alignment among the crucial EMAs(20, 50, 100, and 200), indicating a strong downtrend.
The daily Relative Strength Index(62) displayed a strong spike in its value, similar to the token’s price action.
According to traditional pivot levels, the token traders can expect the nearest resistance for the YFI price at $35000, followed by $40000. As for the opposite end, the support levels are $31200 and $26152.Source