For more than a month and a half in the Yearn.Finance (YFI) market, buyers have been relentlessly fighting for the right to continue their trend. The correction, which was formed after setting a new all-time high, moved to a secure consolidation:
As we see in the chart, buyers managed to break $40,600-41,600, which allowed them to take the initiative. In the previous article, we described one of the main conditions due to which buyers will be able to continue the growth trend.
However, breaking the local critical range of $40,600-41,600 is only half the battle. As buyers failed to update the historical high during the last local attack, they now face a retest in the range of $40,600-41,600. Successfully repulsing the pressure of sellers will break the shackles of consolidation much faster.
In this case, we will expect a new powerful momentum in the YFI market, which will update the all-time high and theoretically stop at $62,500.
Trading Volumes Indicate Continued Consolidation in Yearn.Finance (YFI) Market
The trading volumes situation in the YFI market has not changed. After the end of the growth momentum on 12 February, trading volumes fell.
Although the last local growth wave, within the consolidation triangle, had higher volumes, this is not at all comparable to the volumes during the YFI price impulsive growth. This fact indicates a high probability of continued price movements in the consolidation.
Today’s BTC price impulse did not have a positive effect on the YFI market. If the BTC daily candle still looks good, then on the YFI chart we see the second consecutive falling candle. This fact shows that the BTC dominance is starting to grow again and investments can again focus on BTC and major coins.
YFIBTC Pair Chart Calls For a Correction
If we analyze the YFIBTC pair chart, we see that the price cannot confidently move beyond the black trend line:
The chart shows that during March, buyers gathered strength in the consolidation for a new growth impulse. There was an impulse, but the trend line of sellers persisted. It confirms the high probability of continuing consolidation within the current triangle. In this case, the test in the range of $40,600-41,600 is a positive scenario.
If one loses control of this range, buyers will be forced to retreat to the lower trend line of the consolidation triangle, which passes near the mark of $31,600. In this case, the YFI market may hang in uncertainty until the summer.