Share:
  • Yearn Finance price faces an $8,500 drop to return to $25,000.
  • Resistance within the Ichimoku system corroborates weakness on the Point and Figure chart.
  • Upside potential does remain but is likely limited.

Yearn Finance price action is developing a particularly bearish chart pattern in the form of a head-and-shoulders pattern on its $250/3-box reversal Point and Figure chart, warning of a nearly 25% drop coming up.

Yearn Finance price to top out against crucial resistance levels and eyes a significant drop soon

Yearn Finance price has been stuck inside the Ichimoku Cloud on the daily chart since December 22. The range and bodies of those daily candlesticks have mostly been confined to the bounds of the top and bottom of the Cloud. Today, YFI is testing the top of the Cloud (Senkou Span B) at $33,750.

YFI/USDT Daily Ichimoku Chart

Bulls will likely face some difficulty pushing Yearn Finance price higher. The 50% Fibonacci retracement, Senkou Span B, and daily Tenkan-Sen reside within the $33,500 to $34,750 value area. Combining those three price levels form considerable resistance to any further movement higher.

The oscillators also hint at continued difficulty moving higher for Yearn Finance price. The Optex Bands have developed a relatively extreme slope, warning of extreme overbought conditions getting hit soon. The Relative Strength Index remains in bear market conditions and oscillates between the two overbought levels in a bear market (65 and 55). The RSI is barely staying above the first overbought level at 55.

YFI/USDT $250/3-box Reversal Point and Figure Chart

It is expected that Yearn Finance price action will be constrained to the top and bottom of the Cloud. If YFI continues to follow the Cloud, traders should expect a fast drop between December 28 and December 29 below the neckline of the head-and-shoulders pattern on the Point and Figure chart to the bottom of the daily Cloud at the $25,000 value area.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

APE price nosedives nearly 9% while ApeCoin community votes on three active proposals

ApeCoin community is currently voting on three proposals to increase the adoption of the asset among market participants through higher engagement. APE’s recent token unlock and the active proposals could influence APE price in the coming weeks and months. 

More APE News

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

Circle announced plans to discontinue USDC on the TRON blockchain in a phased manner. USDC issuer will no longer mint the stablecoin on TRON, effective Wednesday. Circle stated that its decision is a part of risk management and USDC will remain safe with the change.

More Cryptocurrencies News

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Uniswap v2 enables swaps on six chains and users can access it from a single interface. UNI price declined nearly 4% on Wednesday to $7.309. UNI price could revisit 2024’s peak at $7.972 as on-chain metrics support uptrend.

More Cryptocurrencies News

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO criticizes SEC says regulator has lost lawsuits consistently; XRP price holds firm above $0.55

Ripple CEO Brad Garlingouse commented on the SEC v. Ripple lawsuit and a potential XRP ETF. The payment remittance firm recently acquired Standard Custody to venture into the crypto custodian business. 

More Ripple News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP