Here are 4 Factors Signaling Yearn.finance (YFI) Remains Bullish
Yearn.finance’s YFI governance token has been struck hard by multiple bearish developments as of late, with the cryptocurrency’s price reeling down towards where it was trading at before its parabolic move to highs of $40,000.
The intensity of this decline has come about as a result of a confluence of factors surrounding its fragmented community as well as a weakening market structure.
Its weakness may be further compounded by another controversial project currently being created by the Yearn founder that has, once again, resulted in serious losses for investors.
This could be perpetuating the already large “founder risk” assigned to YFI due to the founder – Andre Cronje – and his multiple failed initiatives.
From a technical perspective, however, four main factors are currently working in its favor.
One analyst believes that these factors still bolster its bull case and could help lead it higher in the days and weeks ahead.
Yearn.finance Price Continues Struggling as Selling Pressure Remains High
At the time of writing, Yearn.finance is trading down 5% at its current price of $15,730, marking a notable decline from its multi-day highs of nearly $20,000 that were briefly visited during its recent relief rally.
This move came about after its price dove to lows of $12,000, at which point it found some serious buying pressure that helped reverse its downtrend.
The crypto is now facing some pressure today due to another experimental project from the Yearn.finance founder that has resulted in losses from investors called LBI.
One analyst spoke about the launch of this project in a recent tweet, saying:
“Six hours ago, Yearn Deployer (Andre) twice called a new contract that was recently created. The first call was a mint function (10 ETH -> 2,282 LBI), the second was an approval to trade on Uniswap.”
Analyst: These 4 Factors Could Boost YFI
While speaking about where he expects the cryptocurrency to trend in the near-term, one analyst pointed to four factors relating to YFI that are working in favor of bulls.
“Things that are bullish about YFI: – high vol capitulation at $12k – still down 64% from the highs – very low supply – there’s an army of devs building stuff on it that will inevitably get hyped.”
The confluence of these factors may outweigh the slight bearishness that has resulted from the newly incurred “founder risk” incurred by Yearn.finance (YFI).
Featured image from Unsplash. YFIUSD pricing data from TradingView.
OhNoCrypto
via https://www.ohnocrypto.com
Cole Petersen, @KhareemSudlow