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

Bitcoin (BTC) bears appeared 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 cash like Polkadot and Cardano, that are taking part in out predictably. 

Nevertheless, one coin that isn’t getting the limelight it deserves proper now’s (YFI), and at current, it seems to be 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 just lately.

Troubled waters for Yearn

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

A lot to the dismay of traders 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% pink candle was printed on the day by day chart.

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

“Now we have seen the v1 yDAI vault has suffered an exploit. The exploit has been mitigated. Full report back to observe.”

This led to an extra sell-off for YFI, printing one other 15% pink candle in a single day. But regardless of all this unhealthy information, the value 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 surprising? Or was it only a bull flag taking part in out albeit over a barely prolonged time frame as a result of knee-jerk response sell-offs?

Monster bull flag on the day by day

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

Over on the day by day chart, we are able to see {that a} 52% candle was printed on Jan. 7, and after the value consolidated over a interval of 10 days, the value broke out of a basic bull flag construction earlier than the unhealthy 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 measurement because the flagpole on the considerably failed bull flag.

The excellent news for YFI holders now’s that the charts are actually exhibiting the very same sample taking part in out with a 50% candle, which might carry the value 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 buying and selling larger than Bitcoin, and even when you issue within the newly minted tokens, the upside is just staggering.

With out factoring within the additional tokens, the upside to return to its earlier sats worth could 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 scorching proper now

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

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

However all of those have totally rebounded past their earlier sats worth, so now’s 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 take a look at the UNI/BTC chart to see that proper now. All the pieces 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 anticipate the surprising 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 focusing 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 apprehensive about until one other Andre mission will get rugged.

The views and opinions expressed listed below are solely these of @officiallykeith and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes threat. It’s best to conduct your personal analysis when making a call.

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