Crypto YFI soars to $33K after Coinbase listing — is $40K next?

One of the hottest cryptocurrencies in recent weeks has been (YFI). The project fundamentals are food for thought, but its price is also a relatively new approach in the cryptocurrency markets, with YFI valued at over $30,000 per YFI, or three times the price of one BTC, albeit with a much smaller market cap

Nevertheless, it has caught the attention of traders and its price also surged in the past few days after Coinbase Pro announced on Sep. 10 that it will list the token shortly. tests support at $19,000 and surges with 100%

YFI/USDT 1-day chart

YFI/USDT 1-day chart. Source: TradingView

The 4-hour chart is showing a beautiful price construction. A massive impulse wave was seen at the end of August as the price of surged to $38,900. The local top here was confirmed through a bearish divergence, starting a short-term trend reversal.

As the dropdown was strengthened by the weakness of Bitcoin, the price of YFI corrected all the way toward the untested level around $18,900.

The chart shows that this level was untested in the quick run-up right before the local high. In a general uptrend, every previous resistance typically gets tested and confirmed as new levels of support.

However, these tests don’t occur once the market starts to accelerate in parabolic fashion. The lack of these tests warrants a nearly-vertical move upward as the YFI price did at the end of August. 

These untested levels are quite frequently revisited later on as potential support tests of a more protracted retracement as is now showing.

What is the area to hold for continuation?

YFI/USDT 4-hour chart

YFI/USDT 4-hour chart. Source: TradingView

The green box is a crucial level to hold to continue the short-term bullish trend. If the price of drops through the green box, the upward trend is invalidated, and more downside becomes likely. 

The next support zone is found significantly lower if the upper green box between $29,250-30,250 fails to hold. This support zone is between $21,000-22,500 as a potential support zone. Such a drop would result in a 40% correction.

However, this type of correction seems unlikely given the news of the Coinbase listing and with trading only to start on Sep. 15.

Key levels to watch if YFI price breaks all-time high

YFI/USDT 4-hour chart

YFI/USDT 4-hour chart. Source: TradingView

The Fibonacci extension tool is useful as the price of doesn’t provide enough data to detect resistance levels. In the previous article covering the price of Chainlink (LINK), the same technique was used to determine these levels.

If an asset is in price discovery, points of interest can be determined using this tool where the bottom of the previous move is the 0, the top of the last move is the 1. 

The first point of interest is the 1.618 Fibonacci extension, which lies around $54,000. If YFI shows significant strength, the second point of interest can be established at $74,000.

YFI/BTC 4-hour chart

YFI/BTC 4-hour chart. Source: TradingView

The BTC chart of is showing a similar structure, but with one significant difference. A new all-time high was already made against BTC, while the USD value is still lagging.

The same technique can also be used to determine potential points of interest using the Fibonacci extension tool as with the USD chart. If the second point of interest is hit, 1 YFI can hit 6 BTC, an entirely new concept for the crypto markets.

If starts to show strength, all other similar DeFi cryptocurrencies like will probably follow suit, such as DFI.Money (YFII), a similar project. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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