- YFI retraces into a key supply zone after trapping longs, signaling a strong short setup with high rejection potential ahead.
- Cascading liquidity zones from $4,550 to $4,062 define downside targets as bearish structure remains intact despite a mild recovery.
- Confluence of trendline resistance and order block offers a high R:R opportunity for short sellers awaiting confirmation within the zone.
YFI is showing signs of a major shift as a bearish short setup emerges on the YFI/USDT trading pair. Currently priced at $5,225, YFI records a mild gain of 0.33%, with 17 points added today. However, the price action suggests a potential reversal. A clean short opportunity is unfolding as price retraces into a supply zone after a clear liquidity sweep. This move trapped late longs, signaling a high-probability rejection zone ahead. Technical indicators suggest that bearish pressure may soon resume, making this setup attractive for precision-based short entries.
Bearish Structure and Liquidity Roadmap
The daily chart highlights activity from March to June. A descending trendline, labeled “Trendline Liquidity,” connects key lower highs from early March to mid-April. This trendline acted as dynamic resistance throughout the decline. Moreover, price repeatedly failed to break above this line, confirming seller strength.
Source: Crypto Patel
A major market structure break occurred in late April. The breakdown below key support levels triggered accelerated selling down to $4,000 in early May. Consequently, this created a visible shift in trend momentum. Clean order block formations formed in June, pointing to heavy institutional participation at those levels.
Additionally, cascading liquidity zones shape a clear roadmap. The swing low at $4,550 acts as primary support. Below that, clean lows at $4,320 and deeper liquidity pools around $4,062 mark critical downside targets.
Current Price Action and Strategy Outlook
Despite earlier breakdowns, current price action trades above all major liquidity zones. This shows underlying strength from May’s recovery. Buyers stepped in at key support levels, and volume confirmed the reaction with increased activity during major moves.
However, YFI now approaches overhead resistance. The trendline and supply zone alignment creates a perfect confluence for short sellers. Hence, a strong reaction here could confirm the bearish setup. Traders should wait for confirmation within the order block before entering positions.
Moreover, multi-timeframe analysis supports the current consolidation between defined zones. This range provides excellent risk-reward parameters. Significantly, the setup favors disciplined traders looking for high R:R entries based on structure and liquidity.
