2020-10-16 19:00 |
Yearn.finance’s governance token YFI saw a notable rebound from its recent lows overnight, which comes as sentiment surrounding the crypto remains incredibly low.
A fragmented community coupled with a lack of momentum in the aggregated DeFi space has created serious headwinds for YFI, which is now trading down well over 50% from its recent highs.
The lack of sustainable upwards momentum seen by the token in recent weeks indicates that its buy-side pressure is evaporating, which comes as bears grow stronger.
Although it has yet to revisit its recent lows of $12,000 set last week, the cryptocurrency could be positioned to see further downside unless there is some unexpected catalyst for a rally.
One trader says that YFI’s uptrend is officially “finished” as its price drifts lower and lower each day.
He believes that it will ultimately descend below $10,000, noting that he won’t be interested in it for “quite some time.”
Yearn.finance Rebounds from Daily Lows, But Shows Continues Signs of WeaknessAt the time of writing, Yearn.finance’s YFI token is trading up over 4% at its current price of $15,150.
This marks a notable rebound from its daily lows of $14,000 set just a matter of hours ago.
With each strong dip that the YFI token faces, there is a strong influx of buying pressure on the other side that helps drive it higher.
That being said, each subsequent rebound is growing weaker and weaker, which indicates that its bulls are losing their strength and influence over its price action.
Ultimately, this could result in it seeing another capitulatory decline that sends it reeling down to, or even below, its recent $12,000 lows.
Analyst: YFI is “Finished” as Downtrend ContinuesWhile speaking about where he thinks Yearn.finance’s embattled token might trend next, one analyst explained that he thinks it will slide lower for “quite some time.”
He notes that they also need to redefine their suite of products, which aren’t currently providing investors with much value as the entire DeFi space plunges lower.
“I think YFI is finished until they manage to redefine the product suite. Probably not a straight line, but I’m not interested in it for quite some time.”
Image Courtesy of Ledger Status. Source: YFIUSD on TradingView.The coming few days should provide some serious insights into Yearn.finance’s future, as the rapid decline seen by YFI’s price may have lasting impacts on the community as a whole.
Featured image from Unsplash. Charts from TradingView.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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