In this post, I'll be providing my technical analysis on YFI, specifically for the Tether (USDT) pair on the daily. YFI is a decentralized finance (de-fi) coin that has seen immense gains ever since it got listed on Binance
Analysis - The first thing we can notice is that YFI is consolidating within a descending wedge - It has been forming lower highs and lower lows for the past few weeks - However, what's worth noting is that the local support has been tested, and we have seen a breakout in volume - This adds confidence to bulls who have been accumulating YFI - The Relative Strength Index (RSI) as well, while still in a overall downtrend, is showing signs of a reversal by forming a higher low - The Moving Average Convergence Divergence (MACD) shows decreasing bearish histograms, and a potential golden cross - There are strong support and resistance zones we can identify - Firstly, we need to break and close above the point where the descending trend line resistance and 0.236 Fibonacci resistance converge - With confirmation, we could see a breakout with momentum leading up to the 0.618 Fibonacci resistance, and then the ascending trend line resistance marked by the dotted red line
Conclusion In summary, the fact that there was a volume breakout at the local support level is extremely bullish. Indicators are demonstrating signs of a reversal as well, and we could anticipate huge upside as this coin has a price history of having demonstrated huge momentum.
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@EquitySink, I don't know about that, but might be a hot minute before we starts seeing a serious reversal. Low correlation with BTC and ETH, which could be a good and bad thing...
Michael_Wang_Official
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@brandonq1995, You also have to take into account that it did over 4x while other coins were barely struggling to maintain support. Technicals indicate potentiality for a breakout for me. Thanks for commenting.