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Price Analysis

Yearn Finance Price Prediction: YFI Bulls Weak, to $18k or $44k?

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The Yearn Finance (YFI) price has more than tripled in the last month alone.

Although 44 percent down from its all-time high of around $43.5k, the token’s performance is, nonetheless, stellar for holders who got in early—back in June, or for those who bought when prices tanked to $8k in early November.

At the time of writing (Dec 10), the  YFI price is trading at $24,671.17, down 19 percent in the last week of trading.

The YFI token is range-bound in a narrow channel. While prices make series of lower lows, bears are yet to wipe out gains of Dec 2; an encouragement for bulls.

If anything, it may be a basis for another wave that may drive prices above Dec 2020 highs of $31.5k towards its all-time high of $44k (data from Binance).

Yearn Finance (YFI) Price Overview

Week-to-date, bears are in control. Of note, prices are trending lower inside Dec 2 bull bar. From volume analysis, this is bearish.

However, bulls must flow in, prop prices, for a reversal back to $31.5k or even a close above Dec 2020 highs as aforementioned.

As prices range, the uptrend is firm as the YFI price trade within a bullish break out pattern set in motion by the high volume bar of Nov 7.

Although the upward momentum is tapering as candlesticks print lower lows with decreasing volumes, buyers have a chance. It is only valid as long as prices above the middle BB and bears don’t follow through on steep losses of Dec 8.

Yearn Finance (YFI) Market Movers

Fundamentally, the performance of the YFI governance token is dependent on what the founder Andre Cronje has in store. The yield aggregator is still in beta and is inclined to profit maximization in DeFi.

For now, the YFI governance token has been fully distributed/minted, and sustaining prices is hope from holders of a rally beyond $43.5k. The YFI token is available for purchase at Binance, Uniswap, yETH vault, and other exchanges.

Set to earn maximum returns on deposited assets, the Yearn Finance DeFi protocol has found success.

The founder is also experimenting with other products spanning from trustless insurance to DEXes and more.

Notably, the YFI token has been voted to receive BNT liquidity mining rewards. The Bancor protocol is one of the earliest DEX that has been getting a lot of traction lately after launching V2.1.

Yearn Finance (YFI) Price Prediction

Yearn Finance Price Prediction: YFI Bulls Weak, to $18k or $44k?

The Yearn Price (YFI) appears to be peaking. It is stable in the last 24 hours but down double digits week-to-date.

Even if the uptrend appears firm, there are lower lows relative to the upper BB. Of note, bulls didn’t follow through after Dec 2 conspicuous high volume bar. It suggests that the rally on that day was climactic, marking the end of a correction after a slump that began in mid-November.

While prices range inside Dec 2 bull bar, bear candlesticks have been printing with increasing trading volumes. As such, a drop below the middle BB may confirm losses of Dec 8 setting in motion another sell-off towards the 50 percent Fibonacci retracement level of the Nov to Dec trade range. In that case, the first bear target will be $18k.

On the other hand, assuming YFI/USDT find support and break above $32k, buyers may drive the token’s prices back to $44k gleaning from the Fibonacci extension tool based on Nov to Dec trade range.

Chart Courtesy of Trading View

Disclosure:  Opinions expressed are those of the author. Do your research.

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