Yearn Finance Price Forecast: YFI eyes a new all-time high if this key level is conquered

Yearn Finance price is trading around a crucial level that could see it skyrocket or crash. An on-chain metric points that the bullish scenario seems more likely.

Yearn Finance price at crossroads

Yearn Finance price has been forming higher highs and higher lows for more than 100 days. At the time of writing, YFI was creating a swing low at $33,187. Connecting these swing highs and lows using trendlines results in an ascending parallel channel.

Since Yearn Finance price continues to hold above a crucial support level, a rebound seems plausible. The target would be a 75% upswing towards the setup’s upper boundary at $60,300.

For this target to be confirmed, YFI needs a decisive close above a crucial supply barrier around the $40,550 level. In such a case, the DeFi token will be primed to retest its previous all-time high at $55,587, followed by a climb to record levels.

YFI/USDT 1-day chart

Supporting this bullish thesis is a sudden spike in the number of whales holding between 1,000 to 10,000 YFI tokens. Three new whales have joined the network since March 7, which indicates high net worth individuals' interest in YFI at the current price level.

All-in-all, this development is bullish due to massive capital inflow and could reflect in Yearn Finance price shortly.

Yearn Finance Holders distribution chart

Regardless of the bullish outlook, investors should note that a sudden spike in selling pressure leading to a drop in Yearn Finance price below $29,850 could invalidate the bullish thesis.

In such a case, the DeFi token could slide as low as $27,400.