The DFI.money (YFII) price has broken out from the $2,500 resistance area but is currently returning to validate it as support.

Despite the ongoing short-term decline, the trend is still likely to be bullish and should continue moving upward.

Since breaking down on Oct. 2020, YFII had been trading below the $2,500 resistance area, having made four unsuccessful breakout attempts.

However, YFII successfully moved above this level on Feb. 11, reaching a high of $3,682 several days later. Nevertheless, the highs could not be sustained, and YFII has been moving downwards since and is close to validating the $2,500 area as support.

Despite the loss of momentum evident by the decreasing RSI and MACD, the Stochastic oscillator has made a bullish cross. The RSI is still above 50, and the MACD is above 0, indicating that the trend is still bullish.

Cryptocurrency trader @TradingTank outlined a YFII chart, stating that it looks ready to move upwards after breaking the $3,500 resistance area.

However, since the tweet, YFII has actually fallen, created a double top pattern, and has been moving downwards since.

It is now approaching the closest minor support area at $2,650. Both the short-term MACD and the RSI are decreasing, indicating that it is likely to reach the area.

The wave count suggests that YFII is in wave three (white) of a bullish impulse that began on Nov. 2020. The sub-wave count is in orange, suggesting that it has just completed or is in the process of completing sub-wave four.

The most likely target for the top of the move is at $5,360, found by the external retracement of wave two and a Fib extension on sub-wave one. A decline below the sub-wave one high at $2,084 would invalidate this particular wave count.

The move so far has been perfectly contained inside an ascending parallel channel, so this may be a running flat correction that just completed sub-wave four.

To conclude, YFII should complete its correction soon, potentially validating the $2,500 area once more before moving upwards towards $3,950 and possibly higher.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

The post YFII Breaks Out From Long-Term Resistance – What’s Next? appeared first on BeInCrypto.

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