Yearn.finance bounces off support validating a key bullish outlook.
The formation of double-bottom pattern prints a positive picture for gains targeting $35,000.
The decentralized finance (DeFi) darling, Yearn.finance is resuming the uptrend after falling consistently from highs around $34,000, traded on September 27. The crypto encountered high selling pressure after another bounce from support established at $20,000 On September 24. The recent retreat held the ground at $21,800, breathing life into the bullish camp.
At the time of writing, YFI is exchanging hands at $25,500 after adding more than 7% in gains over the last 24 hours. Its immediate upside is capped by the 50 Simple Moving Average (SMA) in the 4-hour range. For the bullish outlook to hold, YFI must step above this key moving average and make a daily close. It is from here that buyers will have the opportunity to shift their focus on higher levels such as $28,000 and $30,000.
Meanwhile, the bullish action also follows the formation of another double-bottom pattern. These types of chart patterns highlight key support areas and often help investors to time reversals from an extended downtrend. They also have a clear target on the upside, for instance, $35,000 for Yearn.finance.
YFI/USD 4-hour chart
From another technical perspective, the Relative Strength Index (RSI) seems to be validating the bullish outlook as it scales the levels towards the midline. Continued upward action on the road to the overbought would encourage more buyers to join the market, thereby creating the volume needed for the breakout to $35,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org