- Yearn.Finance retreated from highs above $30,000, but buyers managed to avert losses under $20,000.
- YFI/USD must stay above the ascending channel lower boundary to sustain the recovery eyeing $34,500.
Yearn.Finance continues to trade within an ascending parallel channel since the beginning of the month. A breakout from the current price level could complete the leg to $34,500. In the meantime, it is essential to hold a crucial support level to sustain the uptrend.
Yearn.Finance likely to breakout to $34,500
YFI was recently rejected by the upper boundary of the ascending channel. Bears swung into action, pulling YFI towards $20,000. The channel’s lower boundary support has remained intact, assisting in keeping the price above $20,000. If bulls build onto the support, a breakout might send Yearn.Finance massively upwards, with a target set at $34,500.
YFI/USD 4-hour chart
The token is also holding above the 100 Simple Moving Average, giving credence to the bullish outlook. Lingering above this level will provide buyers with enough time to reposition for another run-up towards $34,400.
YFI/USD 4-hour chart
On the flip side, if the channels lower boundary support caves, YFI will likely engage reverse gears, embarking on an extensive breakdown. The target on the downside is $18,500. The chart above shows that the 50 SMA is standing in line to cushion YFI from dropping sharply.
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