- YFI price contemplates a return to the level of $25,000 with an $8,500 drop.
- Resistance inside the Ichimoku system verifies Point & Figure Chart’s weakness.
- Upward possibilities remain but are somewhat limited.
Yearn Finance (YFI) price movements are forming a bearish chart formation in a head-shoulders pattern on the $250/three-box reversal Point &Figure chart, alarming an incoming 25% crash. That comes as the crypto space record slight rallies with low volumes, resulting in halts after each attempt. Bitcoin seems to surrender around the $50K mark, rising and plunging beneath it. While writing this article, BTC dropped towards $49,740.
YFI Eyes a Considerable Plunge Soon
Yearn Finance has had its price restricted within the Ichimoku Cloud in the 24hr chart since 22 December. These daily candles had their bodies and range confined to the Cloud’s bottom and top. Meanwhile, YFI tests the Cloud’s top (Senkou Span B) around $33,750.
Bulls might encounter massive challenges pushing the alternative coin higher. The daily Tenkan-Sen, Senkou Span B, and 50% FIB retracement stay in the value area that extends between $33,500 and $34,750. The three price levels create a significant resistance, preventing further upward moves.
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Also, the oscillators support the continued difficulty or Yearn Finance moving higher. The Optex Bands formed a somewhat risky slope, suggesting possible extreme overbought cases in the coming sessions. The RSI (Relative Strength Indicator) stayed in a bearish market situation while oscillating within two overbought zones in a bearish marketplace (55 and 65). The RSI barely maintains beyond the initial overbought mark at 55.
For now, market players might expect the Cloud’s bottom and top to constrain YFI price movements. If the alt continues following the Cloud, enthusiasts can expect a swift plunge between 28 December and 29 December (today and tomorrow). That would take YFI under the head-shoulders pattern’s neckline on Point & Figure to the daily Cloud’s bottom at $25,000.
Global market conditions might detect YFI’s upcoming price movements. For now, bearishness appears to tighten its grip as every rally attempt encounter drawback. Bitcoin has declined again after reclaiming the $51K mark, trading at $49,682 at this publication. Maintaining such narratives will support YFI’s plummets.
Editorial credit: FellowNeko / shutterstock.com
