Bitcoin (BTC) bears looked on in disbelief every bit BTC price rallied to over $57,800 on Feb. 21, sparking a major altcoin rally. It seems balderdash flags are being printed one afterward the other on coins like Polkadot and Cardano, which are playing out predictably.

However, one coin that is non getting the limelight it deserves correct now is Yearn.finance (YFI), and now, it looks like a menstruum of aggressive selling could be coming to an end with a potential 50% move to the upside being imminent. Merely start, let'southward take a look at why it has been struggling recently.

Troubled waters for Yearn

YFI/USD 1-60 minutes candle chart. Source: TradingView

Much to the dismay of investors and traders on January. twenty, Yearn.finance retweeted a gif of Pepe the Frog dressed every bit a magician, which linked to the proposal entitled "YIP-57: Funding Yearn'southward Future."

The commodity outlined the plans to mint 6,666 new YFI tokens for the Yearn treasury, thus increasing the YFI supply by more than 20% and in plow, a 24.45% red candle was printed on the daily chart.

After the ambitious selling eased off, the price slowly gained traction over again. Nevertheless, most two weeks later on on Feb. 4, an $11m yDAI exploit occurred, spurring on the following tweet:

"We have noticed the v1 yDAI vault has suffered an exploit. The exploit has been mitigated. Total written report to follow."

This led to a farther sell-off for YFI, press another 15% red candle in a unmarried day. Yet despite all this bad news, the cost unexpectedly rallied 50% to a new all-time high at $52,700, three days earlier Bitcoin cracked the $50K bulwark.

But was this unexpected? Or was information technology simply a balderdash flag playing out albeit over a slightly extended menstruum of time due to knee-wiggle reaction sell-offs?

Monster bull flag on the daily

YFI/USD 1-day candle nautical chart. Source: TradingView

Over on the daily nautical chart, we can encounter that a 52% candle was printed on Jan. seven, and after the cost consolidated over a period of 10 days, the price broke out of a archetype bull flag structure before the bad news started circulating, causing holders to lose faith in founder Andre Cronje.

Still, once the news had passed it was clear from the gradual 52% price increase that bullish investor sentiment had returned, which simply then happened to be the same size as the flagpole on the somewhat failed bull flag.

The good news for YFI holders now is that the charts are at present showing the verbal same pattern playing out with a 50% candle, which would bring the price target upwards to $65,770

$200,000 in play for YFI price

YFI/BTC 1-day candle chart. Source: TradingView

In 2020, YFI was trading college than Bitcoin, and fifty-fifty once you lot factor in the newly minted tokens, the upside is simply staggering.

Without factoring in the extra tokens, the upside to render to its previous sats value would be in excess of 450% from the current price.

However, even past deducting 20% off this level, which would stand for a move to the 0.786 Fibonacci (fib) level, this all the same puts a potential upside target effectually 350%. In other words, this puts YFI at an middle-watering $200,000 per coin.

DeFi is so hot right now

UNI/USD 2-hour candle nautical chart. Source: TradingView

Whilst the prospect of paying $200,000 per coin may seem insane, yous only have to look at how well other projects in the DeFi space are performing. Uniswap, SushiSwap and PancakeSwap all managed to reach 10x since Christmas.

Only all of these have fully rebounded beyond their previous sats value, so now is the time to look for something that hasn't made this move yet, and right now, in my opinion, the largest near obvious i to get side by side is Yearn.

You only have to wait at the UNI/BTC chart to see that right now. Everything most YFI screams "purchase," where even a move just to the 0.236 Fibonacci level would represent a 70% increment in price.

UNI/BTC 1-day nautical chart. Source: TradingView

Bullish and bearish scenarios

If there's ane thing Yearn.finance has taught us, it is always to expect the unexpected when testing in production.

YFI/USD ane-hr candle chart. Source: TradingView

Right at present, there's a heavy point of control around $39,000 that price keeps revisiting and serving as support.

Should this level continue to hold, a motion to the upper resistance of the current channel effectually $55,485 is where I would exist first targeting, before the wider breakout to $65,000.

Should $39,000 fail to concord, I would be looking around $32,500 every bit support, something I'chiliad not worried about unless another Andre project gets rugged.

T he views and opinions expressed hither are solely those of @officiallykeith and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.