Monster bull flag for places $200,000 YFI worth in play

Bitcoin (BTC) bears regarded on in disbelief as BTC worth rallied to over $57,800 on Feb. 21, sparking a serious altcoin rally. It appears bull flags are being printed one after the opposite on coins like Polkadot and Cardano, that are taking part in out predictably. 

Nevertheless, one coin that’s not getting the limelight it deserves proper now could be (YFI), and at current, it appears like a interval of aggressive promoting might be coming to an finish with a possible 50% transfer to the upside being imminent. However first, let’s check out why it has been struggling lately.

Troubled waters for Yearn

YFI/USD 1-hour candle chart. Supply: TradingView

A lot to the dismay of buyers and merchants on Jan. 20, retweeted a gif of Pepe the Frog dressed as a wizard, which linked to the proposal entitled “YIP-57: Funding Yearn’s Future.”

The article outlined the plans to mint 6,666 new YFI tokens for the Yearn treasury, thus growing the YFI provide by greater than 20% and in flip, a 24.45% crimson candle was printed on the each day chart.

After the aggressive promoting eased off, the worth slowly gained traction once more. Nevertheless, about two weeks in a while Feb. 4, an $11m yDAI exploit occurred, spurring on the next tweet:

“We now have seen the v1 yDAI vault has suffered an exploit. The exploit has been mitigated. Full report back to comply with.”

This led to an additional sell-off for YFI, printing one other 15% crimson candle in a single day. But regardless of all this dangerous information, the worth unexpectedly rallied 50% to a brand new all-time excessive at $52,700, three days earlier than Bitcoin cracked the $50K barrier.

However was this sudden? Or was it only a bull flag taking part in out albeit over a barely prolonged time period as a consequence of knee-jerk response sell-offs?

Monster bull flag on the each day

YFI/USD 1-day candle chart. Supply: TradingView

Over on the each day chart, we will see {that a} 52% candle was printed on Jan. 7, and after the worth consolidated over a interval of 10 days, the worth broke out of a basic bull flag construction earlier than the dangerous information began circulating, inflicting holders to lose religion in founder Andre Cronje.

Nevertheless, as soon as the information had handed it was clear from the gradual 52% worth improve that bullish investor sentiment had returned, which simply so occurred to be the identical dimension because the flagpole on the considerably failed bull flag.

The excellent news for YFI holders now could be that the charts are actually displaying the very same sample taking part in out with a 50% candle, which might convey the worth goal as much as $65,770

$200,000 in play for YFI worth

YFI/BTC 1-day candle chart. Supply: TradingView

In 2020, YFI was trading increased than Bitcoin, and even when you issue within the newly minted tokens, the upside is just staggering.

With out factoring within the further tokens, the upside to return to its earlier sats worth can be in extra of 450% from the present worth.

Nevertheless, even by deducting 20% off this degree, which might signify a transfer to the 0.786 Fibonacci (fib) degree, this nonetheless places a possible upside goal round 350%. In different phrases, this places YFI at an eye-watering $200,000 per coin.

DeFi is so sizzling proper now

UNI/USD 2-hour candle chart. Supply: TradingView

While the prospect of paying $200,000 per coin could appear insane, you solely have to have a look at how effectively different initiatives within the DeFi area are performing. Uniswap, SushiSwap and PancakeSwap all managed to perform 10x since Christmas.

However all of those have absolutely rebounded past their earlier sats worth, so now could be the time to search for one thing that hasn’t made this transfer but, and proper now, for my part, the biggest most evident one to go subsequent is Yearn.

You solely have to have a look at the UNI/BTC chart to see that proper now. Every part about YFI screams “purchase,” the place even a transfer simply to the 0.236 Fibonacci degree would signify a 70% improve in worth.

UNI/BTC 1-day chart. Supply: TradingView

Bullish and bearish eventualities

If there’s one factor has taught us, it’s at all times to count on the sudden when testing in manufacturing.

YFI/USD 1-hour candle chart. Supply: TradingView

Proper now, there’s a heavy level of management round $39,000 that worth retains revisiting and serving as assist.

Ought to this degree proceed to carry, a transfer to the higher resistance of the present channel round $55,485 is the place I might be first concentrating on, earlier than the broader breakout to $65,000.

Ought to $39,000 fail to carry, I might be trying round $32,500 as assist, one thing I’m not fearful about until one other Andre mission will get rugged.

The views and opinions expressed listed here are solely these of @officiallykeith and don’t essentially replicate the views of Cointelegraph. Each funding and trading transfer entails threat. You must conduct your individual analysis when making a call.

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