Market Overview for Yearn.Finance/Tether (YFIUSDT)

Summary
• Price action shows a sharp decline from $3,666 to $3,555 amid increased bearish momentum.
• Volatility expanded significantly after 19:15 ET, as seen in the 5-minute Bollinger Bands.
• RSI hit overbought levels early and then dropped below 40, indicating a bearish shift.
• A bearish engulfing pattern formed at $3,666–$3,624, confirming a potential continuation of downward bias.
• Volume spiked during the breakdown from $3,660, supporting the bearish move.

Price and Volume Overview

Yearn.Finance/Tether (YFIUSDT) opened at $3,640 at 12:00 ET − 1 and traded as high as $3,673 before closing at $3,555 at 12:00 ET on 2026-01-08. The 24-hour low hit $3,506. Total volume amounted to 149.84824 and notional turnover reached $515,152.01 across the 5-minute timeframe.

Price Action and Key Levels

The market broke below a short-term support zone at $3,660, with a bearish engulfing pattern confirming the breakdown. A 5-minute Fibonacci retracement from the $3,506 to $3,673 swing shows 61.8% at ~$3,569, where some buyers may appear. Key resistance appears at $3,650–$3,666, and support is forming at $3,550–$3,530.

Trend and Momentum Analysis

The 20- and 50-period moving averages on the 5-minute chart are both bearish, with prices below both. MACD turned negative after 19:30 ET, and RSI dropped to the 30–40 range, signaling bearish momentum. Volatility, as measured by Bollinger Band width, expanded after 19:15 ET, aligning with the price drop.

Volume and Turnover

Volume spiked during the breakdown from $3,660 to $3,624, confirming the bearish move. Turnover also increased during this period. Divergences between volume and price action were not observed, suggesting the bearish move is supported by activity rather than manipulation.

Outlook and Risk

The immediate path of least resistance appears to the downside, with potential to test $3,530–$3,506. A retest of the $3,650–$3,666 zone could trigger a bounce, but a breakdown below $3,530 would confirm a deeper correction. Investors should monitor the 20-period MA for a potential short-term bounce signal, but bearish momentum remains intact.