Yearn.Finance Price Prediction: YFI showing signs of a bullish reversal

  • YFI was down 72% since its peak at $43,966 but is showing signs of a reversal.
  • The digital asset is currently trading at $18,439 after establishing a low at $12,260. 

YFI is one of the most popular DeFi projects, overtaking Bitcoin in price, but not in market capitalization, which reached $1.2 billion at its peak.

Several indicators are showing YFI is ready for a bounce

On the daily chart, the bounce seems to be underway already after a low at $12,260. 

YFI/USD daily chart

yfi price

The TD sequential indicator presented a buy signal on October 7, which seems to have been validated over the next two days with a 60% bounce from YFI. The MACD is closer to a bullish cross, but not quite yet there. 

YFI Open Interest Chart

yfi price

The average open interest of YFI on major exchanges like Binance, KuCoin, and OKEx, has increased significantly over the past 15 days. This metric represents the dollar amount of open positions and indicates that bulls are picking up steam. 

YFI Number of Large Transactions

yfi price

Using the chart provided by IntoTheBlock, we can observe a notable rise from a low of 99 transactions with a value of $100,000 or greater on October 5, to 423 transactions currently. Although an increase in large transactions doesn’t necessarily represent a bullish outlook, we can assume that most transactions were positive because of the rise in prices. 

YFI/USD 1-hour chart

yfi price

The hourly chart also flipped in favor of the bulls after climbing above the 50-SMA and then the 100-SMA and turning both into support levels. YFI has confirmed an hourly uptrend after establishing several higher highs and higher lows. 

The next target price would be the psychological $20,000 level, followed by the 50-SMA on the daily chart at $25,000.

This rejection could slow down YFI bulls

However, looking at the 4-hour chart, we see that YFI is struggling to stay above the 50-SMA.

YFI/USD 4-hour chart

yfi price

A rejection from $18,384 at the 50-SMA would be notable and likely to push YFI down, at least in the short-term.  

YFI New Addresses

yfi price

Furthermore, the number of new addresses joining the YFI network is not increasing. The peak of 1,280 on September 29 was followed by a lower high with 1,000 addresses on October 4 and only 750 currently. 

This downtrend means that new investors are not particularly interested in YFI, even after the most recent bounce. The rejection of the 4-hour 50-SMA has the potential to push the digital asset down to $15,000.

Buyers need to look out for a clear breakout above the same level to eye up $20,000 and eventually $25,000, where the 50-SMA on the daily chart is established.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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