The crazy development pace of any project is impressive and inspiring. However, frantic growth requires frantic resources which run out over time. A clear example of it was the YFI market situation, when buyers decided to take a time out.
The previous trading week ended in a failed buyers’ attempt to take control of $28,000-32,000. During the last YFI buyers’ attack from 2 to 5 December, the insufficient volume amount to continue growth was noticeable with the naked eye.
There was no special resistance from sellers. Thus, buyers did not rush, giving sellers the initiative for correction in the market.
Buyers have kept their trend
In the previous article we mentioned the probable scenario of the growth channel lower trend line test. The scenario worked out perfectly with one thing – sellers failed to push the YFI price to $21,385. At the time of writing, the local low is $22,051. The nature of fall did not change the opinion about the medium-term growth continuation.
Of course, the YFI price fall by 25% in 4 days is an unpleasant fact for the investor. Though, taking into account the YFI growth results in November – 25% for this token within normal limits.
Buyers were able to defend the trend line and organize a sharp rebound. Thus, on a 4-hour timeframe, you can see the price movement channel within a week’s fall:
Analyzing the trading volumes, we see that they markedly decreased in both growth and fall. Investors’ interest has sharply fallen, so on the chart we presented the two most likely scenarios of the price development.
Black and white YFI price movement scenario
The sharp price rebound from a low of $21,385 took place without buyers’ volume accumulation. As the chart does not show significantly increased volumes, where large buyers could gain their positions, nor long-term consolidation – the probability of a new strong growth wave is quite low. In this case, the maximum rebound target is $28,000-30,000.
Since this range includes many investors who bought the token on positive news – the weakness of buyers may trigger a new fall wave. In this case, the YFI price will go according to the white scenario with an end target of $15,600.
Nevertheless, a much more interesting black scenario is the local wave of fall continuation to find a strong and interested buyer. This scenario will save the nerves and time of investors and will give a great chance to still see the mark of $43,000 in the near future. The main condition is a significant increase in volumes at around $21,000.