Market Overview for Yearn.finance/Tether

Summary
• Price formed a bullish engulfing pattern near $3360, followed by a sharp rebound to $3466.
• Momentum surged above 12:00 ET with a 30% move in 5 hours, reaching overbought RSI levels.
• Volatility expanded significantly, with a Bollinger Band width increase of 47% from early morning levels.
• Turnover spiked by 300% in the early morning, confirming the strength of the upward breakout.
• A key 61.8% Fibonacci retracement level at $3398 appears to be holding as support during pullbacks.

Market Overview

The yearn.finance/Tether (YFIUSDT) pair opened at $3404 on 2025-12-28 12:00 ET, reached a high of $3466, a low of $3356, and closed at $3424 on 2025-12-29 12:00 ET. The 24-hour volume was approximately 14.37 kYFI, with a notional turnover of around $48.7 million.

Structure & Formations

A strong bullish engulfing pattern formed at $3360 in the early evening, triggering a rally to $3466. This was followed by a consolidation phase with bearish and bullish flags forming between $3443 and $3466. A key 61.8% Fibonacci retracement level at $3398 held during pullbacks, suggesting strong near-term support.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-minute chart crossed bullish, reinforcing the upward bias. RSI hit overbought territory above 70 in the early morning, while MACD showed a strong positive divergence with a wide histogram.

Volatility and Bollinger Bands

Bollinger Band width expanded significantly as the price moved toward the upper band in the early morning, indicating a high-volatility breakout. Price retested the upper band multiple times without a clear breakdown, suggesting continued bullish pressure.

Volume and Turnover

Volume and turnover surged dramatically between 04:00 and 06:00 ET, confirming the strength of the rally. However, volume softened slightly after $3466, indicating potential exhaustion in the short term. Price and turnover remained aligned, showing no signs of divergence.

Traders may expect a test of the $3466–$3470 range over the next 24 hours, with a risk of a pullback to retest $3398 if momentum fails to hold. Investors should remain cautious of a potential overbought reversal if RSI stays above 70 for extended periods.