๐ Right now, #YFIUSDT continues to trade within a descending channel, confirming the ongoing mid-term downtrend. However, recent price action, particularly the break above the downtrend trendline, indicates an increase in buying interest.
๐ After the trendline breakout, the price retraced to the 78.6% Fibonacci support level, where we witnessed a clean bounce. Today, TSXV:YFI is once again approaching this demand area, with the downtrend trendline acting as support. This could be a signal that our dedicated Paradisers and avid readers may find intriguing - a relatively quick potential upward move, likely serving as a pullback at this stage. This move could push the price up by 5%, allowing #YFI to test the 61.8% Fibonacci resistance level and the upper boundary of the descending channel.
๐ However, short-term consolidation is also possible, where #YFI may retest the 78.6% support level once again. It is important to exercise caution in the event that this support level is breached by sellers. In such a scenario, close attention should be paid to the recent lower low, as it must remain intact for any potential pullback or trend reversal to occur.
I like the Yearn project and have been trading it the last year. The biggest issue I see is that the volume is so incredibly low right now. On any given hour, there is only about 1 or 2 total YFI coins that folks are listing on Binance.US. I put in a buy order for 1 YFI at 20% below market and it got filled when some Noob did a market order. We havenโt hit lows yet - and Iโm fairly certain we will never hit all time highs again in YFi or 90% of other alts. Crypto is range bound (in a very wide range) until there is institutional investment or at least real use cases for crypto. Right now crypto is only used for crypto transactions. Itโs fools gold. Very tradable fools gold, but it has no more intrinsic value than my pet rock I bought in the 80s. ;-).