- Since December 4, the rise has seemed like a five-wave upward movement.
- A bearish pattern has formed post the tweet: YFI has completed a double top.
January 3 saw the price of Yearn.finance (YFI) rise for the last five consecutive days, reaching $42,000. Specifically, the negative prognosis is based on a lack of purchasing volume and overbought dangers. Meanwhile, the YFI token repurchase scheme was at the heart of traders’ unexpected interest in the YFI markets.
More than $7.5 million worth of Yearn.finance tokens have been acquired from the open market at an average price of $26,651 per token, according to the Yearn team on December 16. The company’s excess treasury liquidity of $45 million will be used to support further YFI buybacks.
YFI Trend is Still Optimistic
YFI, however, is still 64% behind its all-time high price despite the latest rebound starting three days back on January 10 as the majority of coins bounced back from the recent bloodbath. Popular analyst Altcoin Sherpa shared a chart of the YFI cryptocurrency. According to the trader, it showed what seemed to be a double top.
$YFI: My paper hands took the 7% gain instead of more…oh well, best to be safe in these current conditions. https://t.co/xL9pbdguXF pic.twitter.com/clcnnOJ7fH
— Altcoin Sherpa (@AltcoinSherpa) January 2, 2022
A bearish pattern has formed post the tweet: YFI has completed a double top. Both tops had extended upper wicks, an indication of increased selling pressure. However, despite the absence of an acceleration in these indicators, the data show that the YFI trend is still optimistic.
Since December 4, the rise has seemed like a five-wave upward movement. If this is the case, then YFI is presently making adjustments. The 0.618 Fib retracement support level creates the major support region at $27,200. The most probable scenario would be for YFI to bounce back to this level and try to re-enter the range.
According to CoinMarketCap, the yearn.finance price today is $33,890.73 USD with a 24-hour trading volume of $216,372,580 USD. YFI has been down 1.07% in the last 24 hours.
