Yearn.Finance (YFI) Bounces Prior to New All-Time Low
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YFI has been falling since reaching an all-time high price of $95,000 in May 2021. Initially, the downward movement was contained inside a descending wedge, which is considered a bullish pattern.
However, the price broke down from the wedge in May 2022 and proceeded to reach a low of $4,018. This was just slightly above the $3,000 all-time low price.
Moreover, the weekly RSI fell to a new all-time low. While it has bounced since, it is still following a descending trend line (green).
Currently, YFI is facing resistance from both the previous support line of the wedge and $9,500 horizontal area.
The daily chart shows that YFI broke out from a descending resistance line that was in place since May 9. Afterward, it proceeded to reach a high of $7,461 but was rejected by the $7,400 horizontal resistance area (red icon), creating a long upper wick.
Despite the rejection, the daily RSI supports the possibility of a breakout, since it has already increased above 50.
If one occurs, the price would be expected to increase towards the previously outlined $9,200 resistance area.
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