Yearn.Finance Price Forecast: YFI’s odds of a major sell-off have increased considerably
- Yearn.Finance price remains contained inside an ascending parallel channel on the daily chart.
- The digital asset is on the verge of a significant sell-off if key support level breaks.
- On the flip side, there are significantly more YFI whales now.
Yearn.Finance recently topped out at $52,880 before a huge sell-off down to $28,319 fueled by the overall market weakness. However, the digital asset could be poised for even more downside if bulls can’t hold a critical support level on the daily chart.
Yearn.Finance price on the brink of a crash
On the daily chart, YFI bulls must defend the critical support trendline at $31,600 which is the lower boundary of an ascending parallel channel to avoid a massive drop. A breakdown below this point can quickly drive Yearn.Finance price down to $25,000.
YFI/USD daily chart
In the long-term, the bearish price target is located all the way down at $18,000. Furthermore, the price and the RSI on the daily chart have formed a bearish divergence pattern. YFI price established higher highs while the RSI painted lower highs. This adds more credence to the bearish outlook.
YFI/USD daily chart
On the other hand, the number of YFI whales holding between 100 and 1,000 coins ($3,100,000 and $31,000,000) has grown by 20 since February 10, denoting a significant increase in interest on the digital asset.
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YFI holders distribution
If YFI bulls can hold on to the support level at $31,600, a rebound towards the upper boundary of the ascending channel would be possible. This price target is located all the way up at $50,000 in the long-term.
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.
