• Yearn Finance price posts a spectacular 103% gain in just five trading days.
  • Oscillators values indicate significant overbought levels have been reached.
  • Technical breakout within the Ichimoku system could push YFI higher before any selling pressure occurs.

Yearn Finance price has undoubtedly been one of the biggest surprises of the cryptocurrency space over the past two years. Easily one of the best performers of 2020 and 2021, sentiment and attraction for YFI waned after the May 2021 selling. As a result, six months of consolidation may be coming to an end.

Yearn Finance price gains over $19,000 since November 15, triggering massive overbought conditions

Yearn Finance price action has been almost singular in its performance over the last five trading days. The results of that spike have generated some significant overbought warning signals in all three of the oscillators.

The YFI price spike has put the Relative Strength Index above the last overbought level in a bear market (65), creating an extreme overbought level or the beginning of a transition from a bear market to a bull market. In addition, the Composite Index has printed a new all-time high while also printing hidden bearish divergence between the two peaks of the prior highest high on May 11 to today. Finally, the Optex Bands have reached into extreme overbought territory and have printed a new all-time high as well.

Speculators will raise the most crucial question: Is YFI overbought, or is it positioning for another drive higher? From an Ichimoku perspective, if Yearn Finance can close above $35,600, YFI will have completed all conditions needed for an Ideal Bullish Ichimoku Breakout entry. This would be a massively bullish event as the last time Yearn Finance completed that entry criteria was on April 4.

 

YFI/USDT Daily Ichimoku Chart

Key resistance levels to watch in the near future are the 61.8% Fibonacci retracement at $40,825 and the 88.2% Fibonacci retracement at $64,556. If bulls cannot close Yearn Finance price at or above the 61.8% Fibonacci retracement, a return to the $30,000 value area is likely.

To maintain a bullish outlook, bulls will need to keep Yearn Finance price at a level where the daily close and the Chikou Span are above the Cloud – no lower than $35,500.


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

Recommended content


Recommended Content

Editors’ Picks

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.

More TRON News

XRP fails to break past $0.50, posting 20% weekly losses

XRP fails to break past $0.50, posting 20% weekly losses

XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22. 

More Ripple News

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

More Bitcoin News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP