YFI token remains weak near $14,000

By Ray Crawford·26 October 2020·2 min read

Key Points

YFI has come under pressure near $14,020.
The yearn.finance token was changing hands around that level at the time of writing, unchanged from 24 hours prior but well below the $15,505 resistance where

YFI has come under pressure near $14,020. The yearn.finance token was changing hands around that level at the time of writing, unchanged from 24 hours prior but well below the $15,505 resistance where bulls stalled last week. The token touched $13,745, a sign that buyers have lost momentum. Over the past week, YFI has declined 4.5%, and it remains 75% below its all-time high.

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A downtrend that began in mid-September shows no signs of abating. The token had been trapped in a descending triangle, and while bulls broke above it last week, they failed to sustain any gains. The 4-hour chart paints a bearish picture. The MACD sits in bearish territory, while the RSI has climbed but still sits below the 50 midpoint. YFI trades near the lower band of the Bollinger Band range.

The 50-period moving average at $14,283 represents the nearest resistance on an upside move. Above it sits the 100-period moving average, nestled between the Bollinger Band midline and its upper edge. This level has proven to be tough resistance. With YFI hovering above $14,000 and support sparse beneath, the token could slip to $13,500. Should selling accelerate at that level, further weakness would push YFI toward $13,000.

The daily chart offers a different perspective. The MACD shows a bullish divergence, suggesting that some buying interest has returned following last week's rebound. The Bollinger Bands remain squeezed, often a precursor to sharp moves. Yet three consecutive bearish candles have confined the price to the area around the Bollinger Band midline. A break above that zone would set a target of $14,900. If buyers recapture the $15,000 level, a run to $20,000 becomes possible.

Bitcoin continues to struggle establishing ground above $13,000.

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