Market Overview: Yearn.Finance/Tether (YFIUSDT) Under Pressure Amid Strong Bearish Momentum

Summary
• Price broke below key support at $3723, closing at $3636 after a volatile 24-hour sell-off.
• Momentum indicators turned negative with RSI dropping below 30 and MACD signaling bearish divergence.
• Volatility expanded significantly, with Bollinger Bands widening as turnover surged during the breakdown.
• Volume spiked in the final 3 hours, confirming the bearish reversal despite short-term bullish attempts.

The YFIUSDT pair opened at $3738 on 2026-01-06 at 12:00 ET, hit a high of $3820, and a low of $3615, closing at $3636 at 12:00 ET on 2026-01-07. The 24-hour volume reached 143.07 BTC equivalent, with a notional turnover of $549,368.

Over the past 24 hours, YFIUSDT experienced a sharp selloff following a failed bullish attempt to retest previous resistance levels. A key breakdown below the $3723 support level confirmed bearish sentiment and led to a continuation lower. The price action showed a clear trend divergence between short-term bullish candles and the overall bearish RSI and MACD.

Structure & Formations

The breakdown below $3723 was confirmed by a dark cloud cover pattern during the 01:30–02:00 ET period, followed by a long bearish candle on 14:30 ET that gapped lower. A strong bear flag formed between $3750 and $3692 before the final leg down.

Moving Averages

On the 5-minute chart, the 20- and 50-period moving averages have both fallen below price, signaling a bearish bias. The daily 50/200 EMA crossover remains neutral, with the 200-day line acting as a distant psychological level around $3500–$3550.

MACD & RSI

The MACD turned bearish with a negative crossover and declining histogram as the breakdown accelerated. RSI plunged below 30, entering oversold territory, though with no immediate sign of a bounce. A bearish divergence between price and momentum suggests further downside could be in play.

Bollinger Bands

Volatility spiked as Bollinger Bands expanded significantly during the breakdown phase. Price closed well below the lower band at $3636, suggesting exhaustion in short-term selling pressure—though not necessarily a bottom.

Volume & Turnover

Volume surged during the breakdown, especially from 14:00–16:30 ET, confirming the move lower. Turnover increased in line with volume, showing no signs of divergence. This volume confirmation suggests that the selloff is backed by strong conviction.

Visual

Fibonacci Retracements

The 5-minute chart shows a key 61.8% retracement level at $3670–$3680 acting as a failed support. On the daily chart, a larger 61.8% level is near $3500, which may become relevant if the current bearish trend continues.

Looking ahead, a test of the $3500–$3550 zone appears likely if bearish momentum persists, with potential for a deeper correction if short-term stabilizing factors fail to emerge. Investors should remain cautious of increased volatility and potential short-term overshoot.