YFI & YFII Are At Different Stages Of Their Cycle

DFI.Money (YFII) is showing bullish reversal signs. However, it has to break out above $2540 to confirm the bullish trend reversal.

YFI

YFI has been moving downwards since attaining an all-time high price of $52,880. 

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However, it potentially reversed its trend after reaching a low of $27,437 on Feb. 28. 

Technical indicators nearly confirm the trend reversal. Both the MACD & RSI have given bullish reversal signs, but the Stochastic oscillator has yet to make a bullish cross. 

Nevertheless, there is strong resistance at $43,150. This level is both the previous all-time high price and the 0.618 Fib retracement of the most recent drop. 

Therefore, until YFI reclaims it, we cannot consider the trend bullish.

Cryptocurrency trader @Altstreetbet outlined an YFI chart, stating that the price has begun a bullish impulse.

This does seem likely when looking at the six-hour chart, which shows that YFI has broken out from a descending resistance line. Furthermore, it has reclaimed the $36,600 area.

If YFI were to reach a new all-time high price, the next resistance would be found at $68,439. 

YFII

YFII has been following an ascending support line since Nov. 2020. Most recently, the line served to stop the decrease beginning on Feb. 19, 2021, creating a long lower wick in the process.

Nevertheless, the ongoing bounce has been very weak.

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Despite this show of weakness, two out of three technical indicators are bullish. The MACD has given a bullish reversal signal and the RSI has crossed above 50. 

If the Stochastic oscillator were to make a bullish cross, it would confirm the bullish trend reversal.

Despite the daily time-frame showing bullish reversal signs, short-term time-frames are still bearish.

Firstly, YFII is potentially trading inside a parallel ascending channel, a movement that is likely to be corrective. 

The resistance line of the channel also coincides with the $2540 area. Besides intermittently acting as both resistance and support, the area is the 0.382 Fib retracement level of the most recent decrease. 

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Until YFII manages to break out above it, we cannot consider the trend bullish. 

Nevertheless, similar to the daily time-frame, technical indicators in the six-hour time-frame are bullish.

Conclusion

To conclude, YFI is expected to gradually increase towards a new all-time high price.

While YFII is showing strong bullish reversal signs, it has to break out above $2540 in order for the trend to be considered bullish.

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