Yearn.finance (YFI) crossed above the 200-day simple moving average, which indicates the start of a new bullish trend. This is the first daily breakout and close above the 200 SMA since the September failed attempt.
High Trading Volume
Other technical factors add more confluence to the bullish case scenario, like the rise in the trading volume, which signals buying pressure. If we compare the volume readings from today with September’s readings, we can see a notable increase in the trading volume.
This is the main reason why todays’ breakout above the 200-day simple moving average has more potential to see follow-through.
RSI Positive Momentum
Additionally, we have supportive bullish momentum behind the recent rally, confirmed by the RSI momentum readings above the mid-level 50. We can expect more bullish momentum moving forward if the RSI oscillator stabilizes above the 50 level.
Looking forward: The first resistance level comes around $45,000. However, before that, the big round number of $40,000 can also pose a challenge for the bulls. On the downside, the 200-day simple moving average, which currently stands around $33,000, should act as support.
High Trading Volume
Other technical factors add more confluence to the bullish case scenario, like the rise in the trading volume, which signals buying pressure. If we compare the volume readings from today with September’s readings, we can see a notable increase in the trading volume.
This is the main reason why todays’ breakout above the 200-day simple moving average has more potential to see follow-through.
RSI Positive Momentum
Additionally, we have supportive bullish momentum behind the recent rally, confirmed by the RSI momentum readings above the mid-level 50. We can expect more bullish momentum moving forward if the RSI oscillator stabilizes above the 50 level.
Looking forward: The first resistance level comes around $45,000. However, before that, the big round number of $40,000 can also pose a challenge for the bulls. On the downside, the 200-day simple moving average, which currently stands around $33,000, should act as support.