Key Takeaways:
- Beefy Finance's native token BIFI is down 39% in Mar, with a potential death cross likely to further pull down prices.
Key Takeaways:
- Beefy Finance's native token BIFI is down 39% in Mar, with a potential death cross likely to further pull down prices.
NEW DELHI (CoinChapter.com) — Beefy Finance, a decentralized, multi-chain yield optimizer platform, saw its native token BIFI lose nearly 40% of its value in March.
After rallying 74% in January, it seems BIFI fell prey to selling pressure due to bears’ profit booking. As a result, the Beefy Finance token has been trending downwards since Feb. 26 and is now trading at prices last seen in mid-Jan 2022.
At present, BIFI trades below the token’s 50-day, 100-day, and 200-day moving average, bearish across all time horizons.
BIFI’s Looming Death Cross Likely To Add Selling Pressure
Moreover, BIFI’s 26-day exponential MA (white wave) seems likely to move below the token’s 100-day MA line, forming a bearish technical pattern called a death cross.
In detail, a death cross forms when a token’s short-term moving average trendline moves below a relative long-term moving average. Traders believe the technical pattern signals negative sentiment and weakness.
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The death cross often indicates the onset of bearish price action, resulting in significant selling pressure. Traders would likely take cues from the death cross and start a sell-off.
As such, BIFI would likely fall to immediate support near $1,310. However, if bulls fail to arrest BIFI’s fall, the Beefy Finance token would likely flip immediate support to bring the support at $1,241 into play. Finally, the death cross-induced sell-off could see prices fall to $1,160 before recovering.
Meanwhile, momentum oscillator MACD continues to indicate a bearish momentum for BIFI. However, bars on the MACD histogram, which charts the difference between the MACD line (difference between the 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), are contracting.
In detail, contracting negative bars on the histogram suggest BIFI’s MACD line is moving up towards its signal line, indicating increasing bullishness in BIFI’s price momentum.
Beefy Finance Hopes Oversold RSI Might Reverse Bearish Trend
Meanwhile, the relative strength index for BIFI is oversold, clocking 27.74 on the daily charts. In detail, the RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.
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When the RSI goes below 30, the asset enters the oversold region. An oversold RSI indicates a bullish trend reversal is on the cards. With BIFI in oversold levels, investors who rely on RSI would likely move in to buy the dip and trigger a rally.
As such, a buying spree could propel BIFI upwards.
The Beefy Finance token has immediate resistance near its 200-day MA (red wave) at $1,448. If BIFI flips immediate resistance, the token will target resistance near $1,500. Finally, BIFI’s 100-day MA (yellow wave) acts as resistance for the token near $1,650.
However, the Beefy Finance token needs to break above the resistance band formed by its 100-day and 200-day MA lines before starting a sustained rally.
At the time of writing, BIFI was trading at $1,365, up 0.47% on the day.
