Yearn.Finance price is currently at $28,520 bounded inside a symmetrical triangle pattern formed on the 1-hour chart. The digital asset is still in a retracement period since its high on December 2 at $31,780.
Both bulls and bears see different indicators to support their cause. Let’s dive into the most important technical and on-chain metrics.
Yearn.Finance Price Analysis: Technical Indicators
The most critical pattern is the symmetrical triangle formed on the 1-hour chart. The MACD has just turned bullish for the first time since December 3 and YFI price is just climbing above the 12-EMA and now trying to crack the 26-EMA.
If bulls can turn both moving averages into support levels, the odds of a breakout will be much higher. Using the height of the pattern as a reference, bulls are targeting $34,691 in the long-term after a breakout.
On the other hand, bears need to keep the 26-EMA as a resistance level and push Yearn.Finance price below the 12-EMA to shift the odds in their favor. A breakdown below the lower trendline of the pattern can quickly push YFI price towards $22,060, a 20% pullback.
However, it’s important to note that most technicals are highly in favor of the bulls on the 1-hour, 4-hour, daily, and weekly charts.
Yearn.Finance Price Analysis: On-Chain Metrics
The In/Out of the Money Around Price chart practically shows no resistance to the upside besides the range between $29,510 and $30,360. This area would be above the upper trendline fo the symmetrical triangle pattern which means it won’t pose much of a risk for the bulls.
A breakout above $30,360 seems to indicate that Yearn.Finance price can quickly climb towards $33,000 according to the IOMAP chart. We can also see a lot more support on the way down starting at $28,616.
Additionally, the inflow volume of YFI has dropped significantly over the past month. This metric shows the number of YFI coins that are deposited into exchanges. Usually, a higher number is bearish as it indicates investors are looking to take profits by selling.
In this case, the number of YFI coins going to exchanges has dropped by 54% in the past month and 53% in the past 24 hours alone which indicates that investors are not looking to take profits but hold, a bullish indicator.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
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