As YFI trades 25 percent below its record high, there is an interesting bullish pattern for traders to consider.
That is ‘Golden Cross,’ a telltale technical indicator that suggests that the price of the underlying asset would rise in the future sessions. The pattern comes to life when an asset’s short-term moving average jumps above its long-term moving average.Depending on the timeframe of the moving averages (or MA), a Golden Cross can be both a lagging and leading indicator.
YFI/USD prints a Golden Cross on its 4H chart. Image Source:Against the bullish indicator, YFI is also showing a potentially bearish one in its Relative Strength Index. The token now stands close to entering the so-called ‘overbought’ area. That amounts to a downside correction under the pretext of an overvalued YFI, especially after the token’s enormous price rally in the last 48 hours.
YFI/USD, as shown in the chart above, surged by 38 percent – from $22,574 to as high as $31,170. The jump came in the wake of a wider recovery trend across the cryptocurrency market. YFI, which is a native asset of the DeFi-focused platform Yearn Finance, climbed alongside, posting better returns than the top ten cryptocurrencies due to extreme speculation around its parent project.
YFI Levels to Watch
YFI/USD has established a medium-term support level in the form of an ascending trendline (green). This price floor rejected the pair’s multiple downside attempts, illustrating a considerably higher buying sentiment around it.
Yearn Finance Fibonacci Retracement graph and its price targets. Source:Meanwhile, traders should also be watching the levels placed via a Fibonacci Retracement graph made from a swing high of $38,990 to a swing low of $20,672. As of now, YFI is testing 50% level as its support–near $29,831–to extend its pullback move towards $31,993.
