Yearn.Finance looks to extend rebound beyond $20,000
- YFI stays on track to close second straight week in the green.
- $21,400 is the next Fibo target if bullish momentum remains intact.
After dropping all the way to $7,500 on November 5th, YFI staged a decisive rebound and climbed to a fresh monthly high of $19,275 earlier in the week. Although YFI seems to be fluctuating in a consolidation channel in the second half of the week, it looks poised to extend its rebound beyond $20,000.
A daily close above $18,400 could attract buyers
After the two-day rally that was witnessed during YFI's introduction into the market, the price remained in a steep downtrend. The Fibonacci 23.6% retracement of this drop is located at $14,600 and YFI seems to have already flipped this level into a support. Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart is currently floating around 60, suggesting that there is more room on the upside before YFI becomes technically overbought.
Currently, the price is testing the next Fibonacci resistance at $18,400 and if YFI manages to make a daily close above that level, $21,400 (Fibonacci 50% retracement) could be seen as the next target. Ahead of that level, some buyers might want to book their profits near $20,000 psychological level.
On the downside, a violation of $14,600 could trigger additional sell orders and put YFI under renewed bearish pressure.
YFI/USD daily chart
Yearn.Finance seems to have established its near-term bottom at $7,500 and market participants could look to capitalize on additional gains if the price clears $18,400 hurdle.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
