YFI and YFII are gaining importance again, could help the DeFi index to recover

Yearn.Finance (YFI) then created a double bottom and a breakout above the descending resistance line.

DFI.Money (YFII) created a double bottom and then regained the resistance area of ​​$ 2100.

The DeFi Index (DEFIPERP) is moving along a long-term ascending support line.

YFI

On May 23, YFI hit a low of $ 23,859 and bounced back. The jump confirmed the USD 28,000 area of ​​support.

However, the token failed to break above the descending resistance line and returned to near the same level on June 22nd, creating a double bottom.

It then broke the descending resistance line and continued to hit a high of $ 37,783 on July 7th. It is currently being retested after the outbreak.

However, the technical indicators are neutral / bearish. The MACD is rising but still in negative territory and the RSI is below 50. While the stochastic oscillator has produced a bullish cross, it has started to go down.

The next resistance is at $ 51.067, the 0.382 Fibonacci retracement resistance area.

Daily YFI / USDT Chart | Source: TradingView

The short-term move since June 12th has resembled the incipient crossover wave pattern that culminated on July 7th with the aforementioned high of $ 37,783.

Then YFI broke under the rising wedge. So far, the price has hit a low of $ 30,124, very close to the Fib retracement support at 0.618.

If the move is indeed an incipient crossover, the YFI will make a higher low near this level and continue its uptrend.

YFI / USDT 2-hour chart | Source: TradingView

Highlights

• YFI is trading above the USD 28,000 support.
• It completed a first wave of crossovers.

YFII

Similar to YFI, YFII also formed a double bottom pattern in May / June, which is also linked to a very significant bullish divergence in the MACD, RSI and Stochastic oscillators.

After that, the token moved up and retook the USD 2,100 resistance area. On July 14th he confirmed this zone as a support (green symbol). However, it is struggling to break above the 0.5 fib retracement resistance level at $ 2,441.

The MACD, RSI, and Stochastic oscillators are all bullish, even if they are showing bearish strength.

If it can move above the 0.5 Fib resistance, the next resistance will be at $ 3,250, created by the May high.

Daily YFII / USDT Chart | Source: TradingView

Highlights

• YFII created a raised floor.
• It has reclaimed the USD 2,100 resistance area.

DeFi index

The DeFi index has been falling since May 11th when it hit an all-time high of $ 3,847. The decline led to $ 1,174 on May 23, confirming long-term ascending support.

On June 22nd, the price initially plunged below this support line, which should be broken (red circle). However, it did not regain that line long after and has been steadily rising ever since.

The recovery from this line was initiated by the bullish divergence of the MACD and RSI. However, both indicators became bullish.

The main resistance range is between $ 2,141 and $ 2,466, the 0.382-0.5 fib retracement resistance levels.

DEFIPERP / USDT daily chart | Source: TradingView

The downward movement looks like a completed retrograde impulse (orange). If so, the next upward move could be an ABC correction, where wave A is the starting crossover.

When this happens, the index is expected to hit the previously outlined resistance area between $ 2,141 and $ 2,466.

DEFIPERP / USDT 6-hour chart | Source: TradingView

Highlights

• DEFIPERP is moving along an increasing support line
• It completed a bearish impulse.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

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