Yearn.finance (YFI) Price Has Reached The Right Point For Recovery, Here’s The Next Target
The price of Yearn.finance (YFI) has been rejected by the long-term resistance line but has regained an important support level. It may break above the resistance line and rise further in the near future.
Descending resistance line
The price of Yearn.finance (YFI) has been trading below a descending resistance line since reaching its yearly high at $11,120 on March 3, 2023. During this period, the price touched a low of $4,830 on June 10, confirming the $5,000 level as support and rebounded.
The recovery happened swiftly, helping the price reclaim the $6,600 level and retest the resistance line. Despite being rejected (red arrow), it still holds above the $6,600 support level.
The daily RSI indicator has broken above its long-term resistance line and is trending upward. Such breakouts in the RSI often lead to similar breakouts in price action.
Therefore, the price of YFI is likely to bounce off the $6,600 support level and break above the resistance line in the coming days.
If successful, it could rise to the next horizontal resistance level at $9,500, marking a 40% increase from the current level.
Short-term outlook
The 4-hour chart shows that the price of YFI is retesting the previous breakout level at $6,600. This is a normal move after the breakout.
Since this area also coincides with the 0.5-0.618 Fibonacci retracement support zone ($6,500-$6,680) of the recent up move, there is a high probability that the price of YFI will bounce from this area. The nearest target for this upward move is the July 3rd high at $7,430.
Conclusion
Technical indicators suggest that the price of YFI will bounce from the $6,600 support level and rise further in the coming days. Breaking above the long-term resistance line will help the price reach the next resistance level at $9,500.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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