After the total Yearn.Finance fall in September 2020, the trajectory of price movement has changed drastically. If at the start of the project we observed vertical growth without stops, then starting from November 2020, most of the YFI price movement is occupied by consolidation.
About a month ago, we published an article describing our expectation that YFI prices would continue growing to an all-time high.
The main condition of this scenario was that buyers should keep control of the range of $28,000-32,000:
YFI Consolidation Before Reaching the Range of $58,000
As you can see on the chart, buyers have been accumulating strengths in this range for a whole month to form a new growth wave.
In just 4 days after consolidation, buyers managed to update an all-time high, fixing a new one. At the time of writing, this is $49,463.06.
If you analyze the trading volumes, one conclusion emerges – the popularity of YFI is growing. In the previous article, we noted that YFI volumes are in 3rd place among the DeFi tokens. Today, the YFI market is 2 with daily volumes of $1,856,423,377.
Looking at the confident breakout of the previous historical high, the next YFI target is at the mark of $58,000. Though, as always there is a problem.
From 20 November, the YFI price moves within the white wedge, which buyers will now try to break up.
Maximum Allowable Price Correction for YFI Lies Within the Range of $38,500-39,500
Buyers bought out the entire offer of sellers very aggressively within the previous historical high limits.
For the same growth continuation, buyers should keep this range at least at the 4-hour timeframe. Otherwise, the correction will continue lower, up to the range of $38,500-39500.
This option is dangerous because the previous historical high will again be under sellers’ control. And this can help them make the correction even deeper and test the wedge lower trend line with a global target of $33,000.
Yearn.Finance Struggles to Regained its Popularity in the DeFi space
As a speculative tool, the project Yearn.finance token was implemented. However, if we look at the locked funds amount to the project, according to Defipulse Yearn.finance takes 15th place:
The project failed to restore the level of past glory it gained in August 2020 and stay in the top 5 strongest DeFi projects.
Let’s hope that Yearn.Finance catches up with the loss and will be able to make a good foundation for continued price growth in the medium term.