Yearn.Finance continues to defy all other DeFi tokens and gravity itself with its unstoppable rise to stardom.
The crypto token has bounced over 15% from its local bottom, but a fractal playing out could send YFI flying high to another new record.
Yearn.Finance Flips Support As Resistance, Readies Another Rally
In technical analysis, there isn’t much more significant than a support and resistance flip.
When price action passes through support and confirms it as resistance, it is a sign that the range is in the past, and the market wants to test new prices. The same is true in reverse, just like in the example below taken from a 4-hour Yearn.Finance price chart.
The ultra-rare DeFi token with a supply of just 30,000 is now far more expensive than Bitcoin, and its sent the crypto market into a tailspin.
YFIUSD 4H Support and Resistance Flip | Source: TradingView
After a pullback, and follow up rally thanks to a listing on Coinbase, Yearn.Finance is back retesting the resistance level it punched through on the way back on up.
Related Reading | YFI Reclaims Support Post Coinbase Listing, New All-Time Highs In Sight
If confirmed, another similar height rise could be next. And a fractal playing out makes a rally all the more likely.
YFI Could Target New All-Time High If Fractal Follows And MACD Crossover Completes
In addition to the DeFi token holding support, Yearn.Finance is also showing similar signs as the last time support was reclaimed.
A failed reversal signal took prices lower on the 4-hour chart, followed by four bullish engulfing candles, showing signs of bulls trying to regain control.
YFIUSD 4H Support and Resistance Flip | Source: TradingView
Eventually, they did, and YFI went flying high once again. The move up coincided with a break of downtrend resistance, and the sort of pattern is playing out once again.
Superimposing the previous rally over the same breakout would take Yearn.Finance to a peak price of $66,000 or more.
Further giving credence to a potentially bullish outcome, is a crossover to the upside nearing completion on the MACD indicator.
The MACD is a momentum measuring tool, and if the last time the indicator crossed bullish is a sign of what’s to come, another big rally in YFI is coming any day now.
Related Reading | DeFi Darlings Chainlink, Binance Coin, Yearn.Finance Plunge Over 10%
A recovery in YFI, could also help lift the rest of the falling crypto space including other DeFi darlings like Chainlink, Binance Coin, and others.
What little bullish momentum is helping to prop up these few coins, could be partially due to another DeFi token causing a stir in the crypto space. Uniswap recently debuted their UNI token, distributing it to early users for what is essentially the crypto version of a stimulus check.
Profits from UNI, could be flowing into YFI and other DeFi projects, and also could be what was behind the recent Ethereum pump.
Credit: Source link
