Yearn.Finance is back in the game after a massive 40% breakout in just one day on January 7 and a lot of continuation in the next three days touching $39,939 on Binance and $40,000 on several exchanges.
YFI price is currently changing hands at $31,500 after a consolidation period of a few days. The digital asset has been extremely volatile in the past week while bulls are trying to keep its total market capitalization above $1 billion.
From a technical standpoint, it seems that YFI price is facing very low resistance on the way up as it is close to its all-time high of $43,996 established on September 12, 2020.
YFI Price Analysis: Can the bulls continue pushing it higher?
There is clearly a lot of bullish momentum right now as YFI price is close to $40,000 again. On the 12-hour chart, Yearn.Finance has established an ascending parallel channel since November 2020.
YFI price has touched the top trendline of the pattern several times in the past on November 20, 2020, December 2, 2020, and more recently on January 9. This resistance trendline is critical and it’s the only barrier that separates YFI from a new all-time high.
YFI/USD 12-hour chart – TradingView
Currently, Yearn.Finance price is trading right in the middle of the pattern. A breakout above the top trendline at $40,500 would quickly push YFI towards $60,000 in the long-term.
So what are the odds of a breakout? Let’s take a look at some other metrics. The In/Out of the Money Around Price chart shows basically no resistance from $33,679 up to $38,742. Similarly, the Global In/Out of the Money model also shows very weak resistance above $30,000 in comparison to the support below.
These metrics indicate that bulls have the upper hand when it comes to a potential breakout. Nonetheless, a breakdown of the lower trendline of the parallel channel is possible and should not be disregarded.
Currently, the lower boundary of the pattern is established at $23,000 which is still far away from the current YFI price of $32,000. Falling below this critical support level would be devastating for the bulls and can lead YFI towards $15,000 easily.
