Yearn.Finance Price Forecast: YFI’s next buying opportunity may come at $18,000
|- Yearn.Finance price is trading inside a descending triangle on the 4-hour chart.
- Several on-chain metrics have turned bearish in the past week, indicating that YFI is poised for a pullback.
YFI had an astounding 290% bull rally that started on November 5 and peaked on November 20 at $29,890. The digital asset seems to be under consolidation, and many indicators are turning bearish in the past week.
YFI needs to hold critical level to avoid a 23% pullback
On the 4-hour chart, Yearn.Finance price is trading at $22,459, just above the lower boundary of the descending triangle pattern formed. A breakdown from this point would most likely drive YFI price towards $17,500.
YFI/USD 4-hour chart
The bulls have lost the 50-SMA support level on November 25. If the support level at $22,459 fails to hold, the nearest price target would be the 100-SMA at $21,230, from which the price could potentially rebound towards the lower boundary of the channel as a re-test.
YFI Holders Distribution chart
It also seems that YFI whales are dumping their coins. The holders distribution chart shows that the number of investors holding between 10 and 100 YFI coins ($240,00 and $2,400,000) has significantly dropped since November 16 from a high of 145 to a current low of 130.
YFI Network Growth chart
Additionally, the network growth of YFI, which had a massive spike that started on November 16, is now declining significantly, which indicates the digital asset is weak and prone to price correction periods.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.