Yearn.Finance Price Prediction: YFI eying up $40,000 after defending critical level

YFI price has plummeted from a high of $39,939 on January 9 to a low of $25,250.
YFI bulls managed to defend a crucial support level at $26,000 and are ready to push the digital asset towards $40,000.

Lorenzo Stroe Independent Analyst

YFI price had a massive 50% breakout on January 7 which got a lot of continuation in the next two days up to $39,939. Unfortunately, the entire market suffered a significant collapse and YFI dropped towards $25,250.

YFI price on its way to $40,000, shows metrics

On the daily chart, the digital asset dropped to a low of $25,250, but the bulls managed to buy half of the dip and defended the crucial 50-SMA support level at $26,000. YFI price is currently trading at $30,700.

YFI/USD daily chart

The In/Out of the Money Around Price (IOMAP) chart indicates that the strongest resistance barrier is located between $32,700 and $33,637. A breakout above this area can quickly drive YFI price towards $40,000 as there seems to be very little resistance ahead.

YFI IOMAP chart

Additionally, it seems that despite the massive 50% price increase in the past month, the number of whales holding between 100 and 1,000 YFI coins ($3,000,000 and $30,000,000) has increased by 10, indicating that large holders are interested in YFI for the long-term.

YFI Holders Distribution chart

However, if the bulls can’t hold the 50-SMA support level at $26,000 on the daily chart, YFI price can quickly fall towards the 100-SMA at $21,000.

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.