Yearn Finance price could double within the next few weeks as buying pressure mounts
- Yearn Finance price broke out of an ascending triangle pattern recently forecasting a potential 90% upswing to $76,500.
- On-chain transactional data reveals that a 1-day candlestick close above $46,000 is a must for YFI's rally.
- Rejection at this crucial supply barrier could lead to a correction towards $30,000.
Yearn Finance price has been consolidating in an ascending triangle pattern for almost five months. A spike in YFI price and volume on February 11 signaled the end of the stagnation phase and the beginning of a new uptrend.
Yearn Finance price aims for higher highs
Yearn Finance price broke out of an ascending triangle pattern recently, indicating a bullish future for the altcoin. Such a technical formation predicts a 90% price surge, which is the distance of the triangle's y-axis, applied to the breakout point.
This target puts YFI at $76,500.
YFI/USDT 1-day chart
Based on IntoTheBlock's Global In/Out of the Money (GIOM) model, the resistance barrier at $46,000 is the only one preventing YFI's bull rally. Here, roughly 2,000 addresses that purchased nearly 8,200 YFI are underwater.
Therefore, these investors might absorb any short-term bullish momentum by selling their holdings to break even. Hence, a 1-day candlestick close above this level is essential for YFI's upswing.
Yearn Finance GIOM chart
On the other hand, YFI's bullish thesis will be invalidated if the short-term buying pressure is overwhelmed by the “Out of the Money” investors around the $46,000 level.
In such a case, a steep correction will push the governance token to the support barrier at $30,000, where roughly 3,100 addresses hold 7,600 YFI.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
