- Yearn Finance price leading cryptocurrency list today with 18% gain.
- Broadening ascending channel containing price action since November.
- Daily Relative Strength Index (RSI) at levels consistent with previous rally highs.
Yearn Finance price is reaching overbought levels, but the rally’s strength over the last two days projects further gains for the altcoin in the short term, potentially 40% from the current price.
Yearn Finance price capitalizing on the fierce race for yield
At the time of writing, Yearn Finance price is up 18%, following yesterday’s 17% gain and bullish outside day on the bar chart. The two-day gain is the second-largest since the broadening ascending channel began in November 2020, driving the daily RSI above the popular overbought level of 70. Moreover, YFI sliced through the 161.8% Fibonacci extension of the 2020 bear market of over 80%.
Based on the historical precedent of other local tops during the duration of the channel, Yearn Finance price is likely one or two days away from marking a new local top. Specifically, when the daily RSI has crossed 70, Yearn Finance price has shifted into a correction within three days or less. If Yearn Finance price continues the rally, it should be complete by Thursday or Friday.
A continuation of the rally, prescribed by the historical levels of volume, will first discover resistance at the channel’s upper trend line at $94,955 and then the 261.8% extension of the 2020 decline at $102,900, representing a 40% gain from the price at the time of writing.
YFI/USD daily chart
Following a local top, Yearn Finance price will find support at the April 19 high at $57,495 before a notable decline to the 100-day simple moving average (SMA) at $40,773, a basis for support during corrections since December 2020.
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