Yearn Finance Price Prediction As YFI Tests $9,168 Support- Is $11,771 Within Reach?

Yearn Finance (YFI) started the year strong, with bulls taking the lead for almost two weeks straight. It recorded a high of $7,651 on February 14 before profit-taking interrupted the rally. This sent the price down 15% to a low of $6,473 on the 19th.

Although bulls attempted to recover the lost ground, bearish efforts kept the price capped under $8,000 for at least 14 days. Meanwhile, investors were waiting to buy YFI at discounted rates. Accordingly, the token’s price plummeted to the $6,743 level before another bullish breakout. This marked the bull’s resurgence into the market.

YFI price broke out on February 14, rising almost 50% to surpass key levels. It recorded a high of $19,161 on Sunday. Nevertheless, the rally has been interrupted again, possibly due to profit-taking. As such, another breakout may manifest soon as the next cohort of investors waits to buy cheap.

At the time of writing, Yearn Finance was trading at $9,279 after losing 3.67% on the last day. Its market cap and 24-hour trading volume were both bearish. The token had lost 3.7% and 3.74% to $340.77 million and $106.48 million, respectively, according to CoinMarketCap data.

Yearn Finance Trading
Source: CoinMarketCap

The YFI price was now resting on the support at $9,168 as bulls planned another rally north, potentially to the $11,771 level. It is worth mentioning that the last time Yearn Finance price tested this level was around August.

Yearn Finance Bullish Drivers

There are several catalysts for the recent surge in YFI price, but all revolve around its unique offerings. These have been defined under permissionless vaults on top of ecosystem products like Convex Finance. Here, you can deposit tokens and receive yields.

Additionally, there is also a brand new set of tokenomics due to veYFI. Here, investors lock their Yearn Finance tokens for a chance to participate in the governance of the ecosystem. Others include yBribe, for selling or buying votes, just like democracy.

Furthermore, the yearn Finance ecosystem also Features the yCRV product. This gives holders a better presence in Curve Finance as well as the best CRV yields in decentralized finance (DeFi). The Yearn Finance ecosystem also boasts the yETH index that will represent multiple Ethereum LSDs.

The introduction of yETH was a value addition for investors, given the token is a game changer in the LSD playing field.

Moreover, the Yearn Finance ecosystem has also been stacking veCRV to give new Curve vaults the maximum 2.5X boost. This is the best yield on Yearn.

Notably, the veCRV and CVX protocols “own” actually belong to the yCRV token holders. This explains why the ecosystem keeps providing the highest annual percentage returns (APR) as a strategy for investor retention. Instead of limiting their operations to just controlling the votes for CRV emissions, they provide valuable incentives in the form of high APR earned.

Yield Finance On A Rebound Mission

YFI price has come under heavy selling pressure the past few days, characterized by value drops from $9,901 to support at $9,168. The buyer congestion around this level is critical for Yearn Finance to resume its uptrend. The bulls must defend it at all costs.

The same support draws energy from a rising multi-week trendline. This means there is a possible trend reversal this week.

YFI/USD Daily Chart

Yearn Finance
TradingView Chart: YFI/USD

A Pending Golden Cross For YFI Price

A pending golden cross upholds the positive outlook for YFI price (called out in the chart above). The price will confirm this bullish signal once the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA.

Such a technical formation is a highly desirable chart pattern that often authenticates an incoming bullish breakout for an asset. Every time YFI displays a golden cross, the price soars with the possibility of embracing a bull market.

As such, investors should not worry about the correction from $9,901. Instead, they can take advantage of the lower-priced tokens to gain momentum behind Yearn Finance’s price. Support at $9,168 would determine the next direction for Yearn Finance.

The RSI price strength at 62 gave a positive indication, suggesting a possible value increase. The moving average convergence divergence (MACD) was moving in the positive region above the mean line. The histograms were also in green. Together, these showed bulls had the advantage.

If YFI price manages a daily candlestick close above this critical level, investor interest could remain intact. This would pave the way for the expected rebound to $9,901 and higher to reach the $11,771 target.

On the downside, if selling pressure increases, the decline may move below the $9,168 support. This could increase the probability of an extended drop, potentially to $8,460. From here, any hints of market instability in the broader market could provoke panic selling. Such a move could push the price down to the $6,945 level or lower. This is highly likely given the negative macroeconomic factors and regulatory pressure spanning the crypto market.

The relative strength index (RSI) was just about to call a sell signal, suggesting the path with the least resistance was upward. Accordingly, a break and hold below the supplier congestion level at $9,168 (lower white band) could inspire a massive accumulation of overhead pressure. This could trigger more losses.

YFI Alternative

Before buying Yearn Finance, consider diversifying your portfolio with FGHT, the native token for the Fight Out ecosystem.

FGHT is one of the best altcoins to buy for 2023 and Features among the best crypto presales to buy, as analysts say it could explode this year after securing listing on centralized exchanges (CEXs) on April 5. The presale has already raised upwards of $4.82 million.

The FGHT presale stage is scheduled to end by March 31. Do not miss out for any reason.

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