Yearn.finance (YFI) Faces Drop to $9,000 as Technicals Remain Weak
Yearn.finance (YFI) has continued to plunge lower despite strength in the Bitcoin price. While BTC crossed above $14,000 once again on Tuesday, the price of the popular altcoin plunged toward $9,000. As of this article’s writing, YFI is down 7.5% in the past 24 hours and currently trades for $9,300, which are multi-month lows.
Analysts fear that the coin is primed to drop even lower in the days ahead as the technical outlook remains weak. Analysts expected the coin to bounce around $10,000 but it failed to do so, even with a potential short squeeze that was brewing on the horizon.
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Yearn.finance (YFI) Ready to Move Lower, Analysts Fear
Analysts fear that YFI could retrace to the $7,000s in the weeks ahead as the coin was rejected at the $10,000 resistance. The chart below was shared recently, which shows this pivotal rejection and the likely retracement that will follow.
Chart of YFI's price action over the past few weeks with analysis by crypto trader Mac (@MacnBTC on Twitter). Source: YFIUSD from TradingView.com
Another analyst, Edward “Teddy” Cleps shared this chart below, showing that the next support level for YFI is likely in the $6,000 region. $6,000 is where the cryptocurrency initially found a top on Binance once it was listed on that exchange.
Chart of YFI's price action over the past few weeks with analysis by crypto trader Edward Cleps (@TeddyCleps on Twitter). Source: YFIUSD from TradingView.com
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Positive Fundamental Developments Continue
YFI’s drop comes in the face of positive developments for Yearn.finance.
Notable crypto-asset fund Polychain Capital run by the first employee at Coinbase (now ex-employee) recently bought $4.5 million worth of the coin. Polychain Capital is one of many prominent funds in the space that has a stake in this leading altcoin, which has been acquired en-masse as it can govern Yearn.finance and provides cash flows for holders.
$YFI 👀 pic.twitter.com/YMvESkEbXr
— Alex Svanevik 🧠(@ASvanevik) October 17, 2020
Yearn.finance has also seen positive fundamental developments with the introduction of new vaults and strategies, driving fees to YFI holders and TVL to the protocol. Analysts are expected to roll out Vaults v2 in the near future, which should drive the protocol even further to the upside.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: YFIUSD, YFIBTC, YFIETH Charts from TradingView.com Yearn.finance (YFI) Faces Drop to $9,000 as Technicals Remain Weak
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Nick Chong, @KhareemSudlow