YFI market participants have chosen a very dangerous path. Of course, the amount of investors’ adrenaline when the YFI price was almost $100,000 cannot be compared with anything.
While the BTC price was limited to $64,000 and began the fall wave in mid-April, YFI buyers have successfully updated the all-time high. The global growth wave in the YFIUSDT market lasted a month longer than in the BTC market.
However the beginning of the correction of the entire market also successfully disappointed YFI investors. The fact is that sellers managed to lower the price to $23,859 from the all-time high of $95,000. The good turbulence of the important Yearn.finance project almost ended fatally. The daily timeframe shows that sellers were trying to break the critical range of $25,500-28,600.
The total collapse on the YFI market will start below the range of $25,500-28,600
This range has been the main buyers’ support since January 2021. It was during this period that buyers managed to exit the consolidation, which began in November 2020 and confidently fixed above it.
Buyers were tested for strength for 2.5 months at that time. Only in March 2021, a new growth wave begins which lasted almost 50 days. It took sellers only 11 days to fully absorb this wave of growth.
So, the scale of the $25,500-28,600 range importance is obvious. And so far there is a chance for the YFI market to recover. Though, there is another problem that is alarming. The daily timeframe also shows that it was after breaking the trend line that the YFI price began to fall to the nearest powerful liquidity zone.
The price rebound on 24 May gave hope for the continuation of a powerful growth wave. However, all other daily candles after 24 May, both in volumes and type of candles make an unpleasant intrigue. To continue to grow the YFI market with the first target of $65,800, buyers need to fix above the range of $52,750.
The local triangle in the YFI market is about to be broken
Looking at the 4-hour chart of the YFI market also suggests another condition for continued growth. The mark of $43,200 is a critical point for keeping consolidation within a triangle. Having lost it, buyers will forget about their initiative and will be forced to defend themselves.
In this case, there will be a re-test of the range of $25,500-28,600. We hope that the passive price movement without volumes in the YFI market in June will be transformed into a strong growth momentum and buyers will reach the first target of $65,800 before the end of this week.