As Bitcoin catches a break after exploding above $13,000 last week, it’s mid-cap rival Yearn Finance (YFI) is looking to rally higher.
The prediction comes from a pseudonymous analyst on Twitter who expects a consolidating Bitcoin to disperse a portion of its bullish sentiment across the Altcoin
‘ href=”https://www.newsbtc.com/dictionary/altcoin/”>altcointokens, especially the ones that belong to the decentralized finance space.
The price of YFI fell by as much as 75 percent as a result.
Yearn Finance trade setup, as presented by the Crypto Cactus. Source: YFIUSD on TradingView.com
But the pseudonymous analyst illustrated in the chart above that YFI/USDT has already bottomed out near $12,250. The pair is now rebounding higher, a move it could extend further given further support from Bitcoin and other external fundamentals.
Other analysts provided a similar upside outlook for the Yearn Finance’s token. Daytrader Loma stated that YFI’s recent bounce increased its probability of breaking above $15,500, a level it accurately tested during the weekend session.
A pseudonymous chartist also expected YFI to continue its uptrend above the $15,000-level.
Looks like the bottom of this $YFI pull back could be in.
Not a bad place to start more long DCAing, imo.
— Slim_Trady (@TradySlim) October 26, 2020
Technical Outlook Bullish
Calls for a YFI rebound appeared more specific as the token came closer to confirming a bullish technical pattern on its 4H chart.
Yearn Finance is forming a Falling Wedge pattern. Source: YFIUSD on TradingView.com
Dubbed as Falling Wedge, the technical structure shows the price in a downtrend, trending inside a set of contracting trendlines.
The more the price falls lower, the slower the trend becomes, as confirmed by the falling volume. At one point, the asset breaks out of the range. After that, it attempts to grow higher by as much as the maximum height of the Wedge.
As the chart above shows, YFI is looking to break above the upper Wedge Trendline. Depending on where it jumps higher, the token would likely surge by 100 percent. That brings the price target roughly near $20,000.