According to textbook bullish indicators, Yearn Finance’s governance token YFI is gearing up for an all-time high.
This pattern, called the “Ascending Triangle,” predicts YFI/USD just below $44,000. This is the highest record achieved in mid-September following the pair’s supersonic bull run. We expect YFI/USD to maintain support near the uptrend line, testing the horizontal base level as resistance.
Later, the pattern predicts that the pair will attempt a breakout above the resistance line.
Yearn Finance Ascending Triangle pattern (in black). Source: YFIUSD on TradingView.com
In retrospect, an ascending triangle is a continuation pattern that appears in the middle of a trend. Traders expect the market to continue in the direction of its previous trend. Therefore, they develop their trading setups accordingly.
YFI is in an upward trend. And now an uptrend line and a downtrend line are forming. This indicates that buyers are currently more aggressive than sellers. A continued test of the resistance trend line weakens the level. So eventually YFI will show an upward trend.
Technically, the breakout range depends on the maximum height between the upper and lower trend lines. For YFI, it’s closer to $15,000. Therefore, the breakout target for the ascending triangle is approximately $15,000 above the resistance trend line. As mentioned above, it’s only $44,000.
YFI settings conflict
Bulls can avoid the bearish reversal pattern occurring around the Ascending Triangle, eyeing the all-time high for the Yearn Finance token.
This pattern, called Head and Shoulders, shows YFI/USD trading higher towards the $30,000-32,000 range. However, we expect the pair to completely reverse the trend and retest the neckline (black rising trend line), resulting in a negative breakout move.
Yearn Finance Head & Shoulder pattern. Source: YFIUSD on TradingView.com
As in the case of the Ascending Triangle, the target for a Head and Shoulder breakout is up to the maximum height of the pattern. This puts YFI/USD at roughly $14,729.