Yearn Finance (YFI) – Taking a breather following its recent impressive reboundPosted on Tuesday, March 29 2022 at 9:13 pm GMT+0000
Yearn Finance (YFI) is taking a breather following its recent impressive rebound that saw the token slicing through the 2/1 Gann fan angle stretched from the January 3rd top.
Encouragingly, the bulls’ fortunes have improved following the breach above the aforementioned Gann line, but downside risks have not fully evaporated since the last positive thrust was not enough to drive the price above the March 3rd high of 22,700.
Will the bulls continue to march higher in the coming sessions? Well, the technical picture is still favoring the case. The expanded Bollinger bands are suggesting increased volatility, and fresh upward pressures may dominate. Additionally, the oscillators are reflecting an increase in the positive momentum as the Awesome Oscillator is accelerating in the bullish territory and the ROC is heading north above its moving average.
A decisive close above the 22,700 level will likely push the price up to the February 7th high at 27,100. Conquering this upside constraint, the 3/1 Gann angle may try to delay a visit of a critical area, the one encapsulating a raft of inside swing lows posted between January 5 and 18 also encompassing the 4/1 Gann angle around 31,000.
On the downside, the bears will need to squeeze the price back below the 2/1 Gann fan angle and most importantly the mid-Bollinger band around 20,000 in order to regain command. In such a scenario, they will trigger a retest of the February 24th trough of 17,120, aiming to restore the broad downtrend.
To conclude, Yearn Finance has stepped beyond the 2/1 Gann fan angle increasing its capacity to stretch the recent recovery. Yet the bullish breakout is still at an early stage and only a sustainable move beyond 22,700 could confirm significant bullish developments.