A YFI analyst calls for a rally in the near-term thanks to the Bitcoin stabilization signals as the number one cryptocurrency caught a break after exploding above the $13,000 last week so let’s read more in today’s altcoin news.
The prediction came from the pseudonymous YFI analyst on Twitter who expects a consolidation from Bitcoin to disperse a portion of the bullish sentiment across the altcoin market. YFI, an alternative investment asset to Bitcoin and the many other cryptocurrencies, could benefit from the capital outflow from the king crypto market:
“[YFI is] honestly not looking so bad at the moment. As though [the] price action is holding above $15K for now, there could be room for a further 20 percent-plus move to the upside. If BTC can consolidate here then there should be room for the majority of [altcoins] to start moving higher.”
Looks like the bottom of this $YFI pull back could be in.
Not a bad place to start more long DCAing, imo.
— Slim Trady (@TradySlim) October 26, 2020
The analogy borrows the daytraders’ psychology of trading after every explosive Bitcoin rally. Most of them sell the leading cryptocurrency at its local highs to secure short-term profits in fiat currencies or stablecoins. YFI stands among the underbought tokens despite logging about 1000 percent gains in the current year. As its yearly high, the cryptocurrency was trading for about $44,003 which prompted the traders to take short-term profits.
Around the same time, Bitcoin consolidated and tried to start a strong rebound that last week stretched to the $13,260 level. It reduced the appeal of most of the altcoin tokens especially those that belong to the decentralized finance space. The pseudonymous analyst illustrated in the chart above that the YFI/USD pair bottomed out at $12,250 and the pair is now rebounding higher which is a move that it could extend further given the support from Bitcoin and other external fundamentals.
Other analysts provided a similar upside outlook for the YFI token. The dray trader Loma stated that YFI’s bounced that happened recently increased the chances of breaking above $15,500 which is a level it accurately tested in the weekend sessions. The calls for a YFI rebound seemed more specific as the token came closer to the bullish technical pattern on the 4-hour charts. dubbed as a Falling Wedge, the technical structure showed a price in a downtrend as it was trending inside the set of contracting trendlines.
The more the price drops, the slower the trend becomes. At one point, the asset breaks out of the range but it then attempts to grow higher by as much as the maximum height of the wedge. As the chart shows above, YFI is looking to break above the upper Wedge Trendline. Depending on the next jump, the token could surge by 100%.
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