Yearn.finance refreshes support at $20,000 but rebounds towards $22,000.
On-chain data predicts increased selling pressure towards $25,000.
Yearn.finance saw the rebound predicted at the beginning of the week invalidated after failing to close above the 50 Simple Moving Average (SMA) in the 4-hour range. The rebound came into the picture following the formation of a double-bottom pattern. Support at $22,000 failed to hold, paving the way for declines that later tested the next demand zone at $20,000.
Meanwhile, a shallow recovery has pulled YFI above $21,000 and could retake the support at $22,000 anytime soon. Yearn.finance is trading within a parallel descending channel, whose support has been instrumental in keeping the bears in check.
On the upside, a breakout is expected to come into the picture, especially if the recovery continues above $24,000. The ongoing momentum is highlighted by the Relative Strength Index (RSI). The indicator shows how strong a particular trend is (either up or down) and whether an asset is overbought or oversold. If the RSI sustains upward movement beyond 40 and towards the midline, more buyers would be encouraged to join the market and capitalize on the expected breakout from the descending channel.
YFI/USD 4-hour chart
YFI/USD price chart by Tradingview
According to IntoTheBlock’s IOMAP, the path ahead of YFI is not a walk in the park. Particularly, the toughest resistance zone lies between $23,978 and $24,659. The model highlights that 64 addresses previously purchased 1,930 YFI in the range.
YFI IOMAP chart
YFI IOMAP by IntoTheBlock
On the downside, it essential for traders to be aware of the lack of a formidable support area. The zone between $20,064 and $19,383 remains to be the most significant support. Here, 197 addresses previously bought around 65 YFI tokens. With that in mind, we can tell that losses are not out of the picture and it is important to proceed with caution.
YFI Intraday Levels
Spot rate: 21,900
Percentage change: 3.57%
Relative change: 776
Read more: Uniswap, Yearn.Finance Tokens Mimic Ethereum’s fall
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