(YFI) – Sellers looking to underpin the medium-term bearish structure (YFI) – Sellers looking to underpin the medium-term bearish structure

Posted on Sunday, December 18 2022 at 9:10 pm GMT+0000 (YFI) flipped backwards after the last recovery fizzled out just near the October 13th bottom, with the price plunging back towards the 5268 four-month low, a breach of which will underpin the current bearish structure.

From a technical perspective, the 20- and 55- day exponential moving averages are plummeting along with price action, endorsing the negative outlook.

Moreover, the momentum indicators are promoting further bearish developments ahead. The RSI dropped aggressively in the last couple of weeks and is currently holding heavy near the 30-oversold threshold, while the MACD slid below its signal and zero lines.

Thus, sellers will become more confident that the descent will gain more legs following a decisive close below the November 8th bottom of 5268. In such a scenario, those are expected to target initially the 161.8% Fibonacci golden number of the last up-leg at 3882. A more sustainable decline could last until the 261.8% Fibonacci extension level at 1639.

If the adjacent support at 5268 proves strong enough for an upside reversal, the price will initially meet the 20- and 55-day exponential moving averages, a jump beyond which will trigger an immediate challenge of the recent high of 7511 recorded on December 5th. Overstepping this key obstacle will introduce a major positive upgrade to the medium-term technical picture and boost buying appetite towards the October 30th high of 8665.

In brief, is exhibiting a strong downtrend on the daily chart and a drop below 5268 will exacerbate the negative impetus. For sentiment to change, buyers would need to surge above the exponential moving averages and the 7511 high.