Meanwhile, Yearn.finance appears to have found a bottom at $13,000. This support has been tested multiple times, all resulting in a considerable bounce upwards. The most recent reversal pulled above $14,000.
YFI is dealing with the resistance at the 50 Simple Moving Average (SMA) as well as the descending triangle hypotenuse. The price appears to be leaning on the bullish side as observed with the Relative Strength Index (RSI). Although the volume is expanding, is not enough to result in a massive spike.
YFI/USD 4-hour chart
Simultaneously, the formation of a descending triangle pattern in the 4-hour timeframe brings into the picture a possible retracement. It suggests that $13,000 is not a bottom but strong support that must be guarded at all costs. Otherwise, YFI/USD could plunge under $10,000. On the downside, $12,000 is tentative support.
It is worth mentioning the bearish outlook will be invalidated if the price shoots above the 50 SMA and the triangle resistance. Such a move is bound to attract more buyers into the market, who will add to the dwindling volume, in the end, launching the much-awaited rocket flight to $20,000 again.
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 email@example.com