Market Overview: Yearn.Finance/Tether (YFIUSDT) – Volatility and Retrenchment in 24 Hours

Summary
• Price tested key resistance at $3,600 before retreating into consolidation.
• Momentum reversed sharply after 5 AM ET, signaling potential bearish exhaustion.
• Volatility expanded in early hours, with turnover rising 4x post-breakout attempt.
• RSI entered overbought territory mid-day, followed by a divergence warning.
• 5-minute Bollinger Bands show tightening before a late-night price drop.

At 12:00 ET on 2025-12-14, yearn.finance/Tether (YFIUSDT) opened at $3,586, reached a high of $3,613, and a low of $3,513, closing at $3,556. Total volume across the 24-hour window was 154.33 YFI, with notional turnover of $536,935.

The pair displayed a textbook bearish reversal after a morning breakout attempt, with a strong rejection at $3,600. A long upper shadow and bearish engulfing pattern emerged around 05:15 ET, coinciding with the largest volume spike. This suggests a shift in sentiment from bullish optimism to cautious bearish pressure.

Structure & Formations

On the 5-minute chart, key resistance at $3,600 was tested twice but failed to hold. A bearish engulfing candle formed at the top, confirming the breakdown. Support levels at $3,560 and $3,530 were also tested, with the latter holding during a sharp decline late in the session.

Moving Averages

The 20-period and 50-period moving averages crossed below the price after 06:00 ET, forming a bearish crossover. The 50-period line acted as initial resistance in the afternoon, reinforcing the weakening trend. Daily moving averages (50, 100, 200) remained well above the session's closing price, suggesting a continuation of bearish pressure into the next day.

MACD & RSI

The MACD turned negative after 04:00 ET, with bearish divergence forming as price made a higher high while momentum declined. RSI briefly hit overbought levels during the morning high but fell below 50 by 05:00 ET, signaling waning bullish momentum. A bearish divergence appeared between price and RSI after 09:00 ET, hinting at further downside potential.

Bollinger Bands

Volatility expanded in the early hours, with the bands widening significantly during the attempted breakout. Price then consolidated between the middle and lower band until a late-night selloff pushed it below the band’s lower boundary, signaling increased bearish sentiment.

Volume & Turnover

Volume surged at 05:15 ET during the rejection at $3,600, confirming bearish sentiment. Turnover spiked 4x during that candle, while later in the session, volume remained subdued during the selloff, indicating a lack of follow-through from sellers. Price-volume divergence suggests potential for a short-term bounce if buyers step in near key support.

Fibonacci Retracements

Applying Fibonacci to the morning swing from $3,569 to $3,613, price found resistance at the 61.8% level ($3,597) and broke down below the 50% level ($3,591) in the late afternoon. On the daily chart, the 61.8% retracement from a recent higher high remains in play for short-term support.

Over the next 24 hours, buyers may test $3,530 as a key short-term support, but a breakdown below that could accelerate the slide toward $3,500. Investors should watch for confirmation of a bearish bias through volume and momentum divergence.