Yearn.Finance Price Analysis: YFI looks ready to rebound, but on-chain metrics suggest upswing will be short-lived
- Yearn.Finance price faces a strong resistance barrier at $25,000 but several indicators have turned bullish.
- On-chain metrics suggest that the bounce could be short-lived.
YFI is trading inside a daily uptrend after establishing a higher high at $31,780. Bulls need to hold a significant support level at $18,228 to post a higher low and continue with the uptrend.
Yearn.Finance price aims for a short-term bounce
On the 4-hour chart, the TD Sequential indicator has presented a buy signal in the form of a red nine candle. Similarly, it also posted the same call on the 12-hour chart, giving more credence to both signals.
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YFI/USD 4-hour and 12-hour charts
One of the most important supply barriers sits at $25,000, as seen in the In/Out of the Money Around Price (IOMAP) chart. Validation of the two buy signals could push Yearn.Finance price up to this point.
YFI IOMAP chart
However, several on-chain metrics have turned significantly bearish. The on-chain volume has decreased substantially over the past three weeks, which indicates that interest in the digital asset is fading away.
YFI on-chain metrics chart
Additionally, the number of daily active addresses and social volume has decreased notably too. This could precede a steeper decline of the digital asset despite the bullish signs mentioned above. On top of that, the IOMAP chart shows very little support on the way down until $19,554.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
