March 2, 2021

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YFII Breaks Out From Long-Term Resistance – What’s Next?

2 min read

The DFI.money (YFII) price has broken out from the $2,500 resistance area but is currently returning to validate it as support.

Despite the ongoing short-term decline, the trend is still likely to be bullish and should continue moving upward.

YFII Breakout From Resistance

Since breaking down on Oct. 2020, YFII had been trading below the $2,500 resistance area, having made four unsuccessful breakout attempts.

However, YFII successfully moved above this level on Feb. 11, reaching a high of $3,682 several days later. Nevertheless, the highs could not be sustained, and YFII has been moving downwards since and is close to validating the $2,500 area as support.

Despite the loss of momentum evident by the decreasing RSI and MACD, the Stochastic oscillator has made a bullish cross. The RSI is still above 50, and the MACD is above 0, indicating that the trend is still bullish.

Breakout
Chart By TradingView

Short-Term Movement

Cryptocurrency trader @TradingTank outlined a YFII chart, stating that it looks ready to move upwards after breaking the $3,500 resistance area.

Movement
Source: Twitter

However, since the tweet, YFII has actually fallen, created a double top pattern, and has been moving downwards since.

It is now approaching the closest minor support area at $2,650. Both the short-term MACD and the RSI are decreasing, indicating that it is likely to reach the area.

YFII Trading Range
Chart By TradingView

YFII Wave Count

The wave count suggests that YFII is in wave three (white) of a bullish impulse that began on Nov. 2020. The sub-wave count is in orange, suggesting that it has just completed or is in the process of completing sub-wave four.

The most likely target for the top of the move is at $5,360, found by the external retracement of wave two and a Fib extension on sub-wave one. A decline below the sub-wave one high at $2,084 would invalidate this particular wave count.

YFII Wave Count
Chart By TradingView

The move so far has been perfectly contained inside an ascending parallel channel, so this may be a running flat correction that just completed sub-wave four.

YFII Channel
Chart By TradingView

Conclusion

To conclude, YFII should complete its correction soon, potentially validating the $2,500 area once more before moving upwards towards $3,950 and possibly higher.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

The post YFII Breaks Out From Long-Term Resistance – What’s Next? appeared first on BeInCrypto.

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