YFI Technical Analysis: Consolidating Gains with a Slight Dip, Watch for Resistance of $40,498
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Past Performance of YFI
YFI has given a monthly return of 21% in its YFI/USDT pair. Last week, it gained around 13% on the back of an increased price to touch $36,000 levels. During the last 24 hours, it has traded between a high of $36,920 and a low of $35,476, as depicted in the chart.
YFI Technical Analysis
At the time of writing, YFI/USDT is trading around $36,089 and slightly in the red zone. The YFI price action saw its movement from $20,075 on December 14, 2021, to moving widely up to its current price. Thus, it has been a good time to hold YFI for traders. The slight dip should not be regarded as a sign of any changes. However, this movement of the coin in late $20,000 had happened in December after the price had traded on a good level of $36,000+ for about October and November 2021. Thus, one can see this as a type of consolidation towards the year-end.
It traded as high as $36,920 and is now consolidating. On the upside, one can look at the next resistance level of $40,498. However, if it dips, one should look at the 4-hour charts to understand the strength of the fall. It is easily above the EMA of $28188.26. Thus, it is a clear BUY signal on the daily parameters.
The following technical indicators have been supporting its upward movement.
The On-balance Volume is at 1.324 million in a sharp upward direction. The volumes have supported the YFI price changes, thus making the rise a strong one. Though the OBV has dipped slightly, the open interest change in the futures market has seen a 65% jump. Thus, the interest is certainly high.
The RSI is overbought with 67% and moving upwards to a strength consolidation position. There can be a change for a short while with a little dip. However, the few day's strength is intact for bullishness.
The MACD line (fast line) is moving quickly and in divergence with the Signal line (slow line). The gap is certainly fuelling the change in the trend towards positivity. The bull run is confirmed by this, and by a very good margin. The MACD has moved beyond zero, thus marking a bullish turn of events.
Price Trends for the Day-Ahead and Tomorrow
In the coming few days, one can look at an increase in YFI prices, unless a major dip happens due to any adverse news. Lookout for the first resistance level of $36,607.88, the second resistance level of $39,903.93, and the third resistance at $40,498.93
In case the market dips slightly, it will not go too far from the pivot level of $31275.52. Lookout for support levels of $30,335.52 and $27,979.47.