As early as the fourth week in the YFI market, sellers are trying to take power into their own hands. The phenomenal YFI price growth, which started in November, began to weaken.
In fact, the last two weeks of November traded at lower volumes than the previous ones. Although the price continued to grow, the range of $28,800-31,000 was a turning point in the YFI market. The current local downward trend is in the range of $21,380-22,320.
During three attempts to break this range, sellers did not manage to close the weekly candle below it. Analyzing the trading volumes during the YFI price correction, we see that investors behave calmly and do not get rid of the token.
This trading week is very important for further forecasting of the YFI price movements. Closing the weekly candle above the range of $21,380-22,320 will be a strong signal for buyers to start a new powerful wave of growth with a test of the historical high.
The YFI price is on the verge of reversal and the growth beginning
If we take a closer look at the nature of the last fall, we see that sellers have fulfilled their task by 50%:
After breaking the critical range on 23 December, sellers failed to maintain control over it. Buyers are now trying to keep the range as a foundation for their counterattack.
Breaking the local trend line, which sellers have been protecting since 19 December, will trigger stop orders. Thus, the YFI price will quickly reach the mark of $28,000 and finally cancel the scenario “Head and Shoulders”.
YFI buyers have something to worry about
Although, not everything is as clear as it seems at first glance. If you compare other DeFi projects, such as UNI or DOT – then YFI still can not overcome its price crisis and start the growth wave. The main problem can be hidden in the YFIBTC chart:
As we can see, the YFIBTC pair price did not keep in the previous price range. And now it has stopped at the last possible support. So far, buyers are not enthusiastic about purchases and are simply slowing down the price fall. Though, breaking this support down will send the price to the YFI historical low test. If this event coincides with a possible BTC correction – the YFI price will fall rapidly to $18,000.
Fortunately for investors, the situation in the crypto market is quite positive. The DeFi composite index is recovering its lost ground, indicating an overall recovery of the DeFi market. Therefore, the probability of a new growth wave in the YFI market is still higher.