Yearn Finance and UMA prices are moving in tight ranges. UMA/USDT and YFI/USDT prices could still reach $11 and $40k in the days ahead.
The yield aggregating platform uses the YFI token for governance. It offers an array of DeFi products for users.
For three days on a roll, YFI prices are trading above the middle BB.
This is an indicator of strength, the basis for buyers whose gains had significantly been diminished to possibly watch for entries in lower time frames.
At the time of going to press, YFI is in green, adding five percent.
The uptrend is clear but not firm. Gains are measured but encouragingly above the flexible resistance line inside the $14 trade zone.
Immediate buy target remains at $40k—around June 2021 highs—while the floor is at $26k.
From the daily chart, YFI bulls appear to be in the driving seat, trending above the middle BB and $30k.
Accordingly, risk-off traders may search for entries in smaller time frames provided prices are above the middle BB, targeting $40k in the medium term.
A dump down below $30k quashes buyers' hopes, allowing bears back into the equation.
The platform is where anyone can build DeFi dApps—flexibly and securely. UMA is the protocol's internal currency.
There are higher highs, reading from the daily chart, but gains are not very pronounced as would have been the case in a recovering market.
Still, the confirmation of the double-bar bullish reversal pattern of July 20 and 21 plus the close above the middle BB could gel buyers together in another leg up.
UMA is now up four percent.
The uptrend is clear. UMA is drawing benefits from a recovering market.
Despite lagging UMA prices, buyers may find opportunities in lower time frames as per technical analysis in the daily chart.
Presently, the floors are at $7, while resistance and buy target is at $11.
In a tight market with short-term floors at around $8, buyers can be shrewd in their entries.
The middle BB is the immediate support level for aggressive buyers targeting $11.
On the flip side, a bearish engulfing pattern sliding below $8 could trigger a sell-off towards $7.