Closely-followed analyst and trader Scott Melker believes that a decentralized finance (DeFi) crypto asset will potentially generate nearly 6x its profit if it shows signs of strength against Bitcoin (BTC).
In a new tweet, Melker points out that the yearn.finance (YFI) yield aggregator could be poised to trigger a massive bull rally against Bitcoin (YFI / BTC) after the seven-month downtrend ended.
According to the trader chart, YFI / BTC may have carved a bottom after bouncing off 0.6, converting previous diagonal resistance to support. The trader expects the pair to convert key 0.84, 1.10 and 1.65 levels into support on its way to an all-time high above 5.00. The move equates to a potential gain of over 470% versus the current YFI value of 0.87 versus Bitcoin.
In Bitcoin, the trader expects the largest crypto asset to break out of the descending channel and reclaim $ 64,000 before rising to a new all-time high of $ 70,000.
In addition to yearn.finance and Bitcoin, the crypto strategist deals with Cardano (ADA). Melker predicts that the smart contract platform will be prepared to break out of an ascending triangle and climb up to $ 2.20, a gain of over 50% from the current price of $ 1.44.
Another coin on Melker’s radar is Binance Coin (BNB). The trader sees the exchange token taking advantage of the $ 460 support before kicking off the next phase of its bull rally, rising to an all-time high of $ 800.
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Featured image: Shutterstock / GrandeDuc