A large bullish flag on the Yearn.finance chart opens up the possibility that the YFI price could hit $ 200,000

Bitcoin (BTC) bears watched in disbelief Bitcoin’s price soared above $ 57,800 on February 21, causing a major rally for altcoins. It appears that bullish flags are being printed sequentially on coins like the Polkadot and Cardano, which play predictably.

One coin that is not getting the importance it deserves right now is Yearn.finance (YFI), and it currently appears to be A tough sell period could end with a possible 50% upside. But first, let’s take a look at why he’s been having problems lately.

Troubled water for longing

YFI / USD 1 hour candlestick chart. Source: TradingView

To the horror of investors and traders, On January 20th, Yearn.finance retweeted a gif of Pepe the Frog disguised as a wizard. The link leads to the proposal entitled “YIP-57: Future of Yearn Funding”..

A large bullish flag on the Yearn.finance chart opens up the possibility that the YFI price could hit $ 200,000
A large bullish flag on the Yearn.finance chart opens up the possibility that the YFI price could hit $ 200,000

The article described the plans to mint 6,666 new YFI tokens for the treasure trove of longingThis increased YFI’s supply by more than 20% and in return a red candle was printed at 24.45% on the daily chart.

After the hard selling subsided, the price slowly regained momentum. About two weeks later, on February 4, there was a $ 11 million exploit on yDAI that sparked the following tweet:

“We have determined that the yDAI v1 vault has been exploited. The exploit has been mitigated. Full report below.”

This resulted in a new sale by YFI that printed an additional 15% red candles in a single day. Yet, Despite all of this bad news, the price unexpectedly rose 50% to a new all-time high of $ 52,700., three days before Bitcoin broke the $ 50,000 mark.

But was it something unexpected? OR It’s just a bullish flag that is evolvingalthough for a longer period of time, due to knee-jerk sales?

Large bullish flag with the rating “Monster” on the daily chart

YFI / USD 1-day candlestick chart. Source: TradingView

On the daily chart we can see that on January 7th a candle was printed at 52% and after the price had consolidated over a period of 10 days, The price broke a classic bull flag structure before the bad news started circulatingThis leads to the fact that the owners lose confidence in the founder Andre Cronje.

Yet, By the time the news got through, it was clear from the 52% rise in prices that bullish investor sentiment had returnedwhich happened to be the same size as the bullish flagpole that somehow failed.

The good news for YFI holders is the following The charts are now showing the exact same pattern with a 50% candle, which would push the price target to $ 65,770.

$ 200,000 for the prize from YFI

YFI / BTC 1-day candlestick chart. Source: TradingView

In 2020, YFI was trading on Bitcoinand even taking into account the newly minted tokens, the increase is just breathtaking.

Without taking into account the additional tokens, the increase to the previous value in satoshis (Sats value) would be more than 450% of the current price.

Even if 20% is subtracted from that level – which would mean a move towards the Fibonacci (fib) level of 0.786 – The potential upside target is still 350%. In other words, this brings YFI to a staggering $ 200,000 per coin..

DeFi has a lot of momentum right now

2-hour candlestick chart for UNI / USD. Source: TradingView

Although the perspective of Paying $ 200,000 per coin may seem insane. Just look how well other projects are doing in the DeFi space. Uniswap, SushiSwap and PancakeSwap have reached ten times their value since Christmas.

But they have all fully recovered from their previous satoshis value. Now is the time to start looking for something that hasn’t taken this step yet and in my opinion, Yearn is currently the biggest and most obvious one to follow.

All you have to do is look at the UNI / BTC chart to see it now. Everything at YFI has been screaming “buy” since then Even a move to the 0.236 Fibonacci level would mean a 70% increase in price.

UNI / BTC 1-day chart. Source: TradingView

Bullish and bearish scenarios

If there’s one thing that Yearn.finance has taught us, it is it Always expect the unexpected when testing.

YFI / USD 1 hour candlestick chart. Source: TradingView

At the moment there is one important control point around 39,000 US dollars, which the price constantly checks and which serves as a support.

If this level continues A move towards the current channel’s overhead resistance around USD 55,485 is the first targetbefore breaking further towards $ 65,000.

If the $ 39,000 doesn’t hold, it would look for support of around $ 32,500, something that doesn’t worry me unless another Andre project is running.

The positions and opinions expressed here are solely those of @offiziellkeith and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.

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