The technical outlook for yearn.finance (YFI) suggests a breakout to $30,000 if bulls break major resistance level
YFI price is up nearly 10% in the past 24 hours and over 21% in the past week to see its value against the US dollar rise above $28,000.
If the upside holds short term, amid the positive sentiment from recent news, yearn.finance could rally to $30,500.
YFI/USD 4-hour chart
As seen on the 4-hour chart, bulls are largely in control. The last few sessions have included a recovery above the midline of an ascending parallel channel to suggest a continuation of the upside momentum could see YFI price hit a new high for the first time since 20 November.
At the time of writing, bulls are eyeing another higher high after printing consecutive green candles between $25,950 and $28,435.
If the uptrend sustains, a break to the upper boundary of the ascending channel will take YFI/USD to $29,500. The next target above this upside barrier is the 161.8% Fibonacci retracement level of the move from $29,956 high to $19,279 low. Should buying pressure push YFI price to the resistance line, YFI/USD will retest the $30,550 level.
Although bulls are likely to target the top of the parallel channel, the middle trendline is even more crucial to their near term objectives.
If profit booking near or around $28,000 increases downward pressure, the initial dip might take prices to the 78.6% Fibonacci retracement level ($27,330). If the downturn picks momentum, bulls might have to seek support at the 20-day exponential moving average at $25,925.
The downward action could turn into a bearish breakout if bulls fail to hold onto recent gains above the 20-EMA line, a scenario likely to see the digital asset retreat to lows of $24,000.
YFI/USD 1-hour chart
The hourly chart seems to support the above bearish outlook. As seen on the chart above, the TD Sequential indicator suggests YFI/USD is on the verge of posting a sell signal. The hourly outlook features a green ‘8’ candle whose validation will signal the possibility of increased downward pressure.
If the sell signal validates within the next few hours, yearn.finance price could decline to $27,049 (20-EMA on the hourly chart). From here bears could be looking at pushing prices down to $25,925.
However, an invalidation of the sell signal and a breakout above $28,000 would indicate a bullish outlook. In this case, YFI price could target 20 November highs near $29,900.
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