{"id":5307,"date":"2020-11-03T21:00:25","date_gmt":"2020-11-03T21:00:25","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=448780"},"modified":"2020-11-03T21:00:25","modified_gmt":"2020-11-03T21:00:25","slug":"yearn-finance-yfi-faces-a-meltdown-as-analysts-eye-decline-to-7500","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/yearn-finance-yfi-faces-a-meltdown-as-analysts-eye-decline-to-7500\/","title":{"rendered":"Yearn.finance (YFI) Faces a Meltdown as Analysts Eye Decline to $7,500"},"content":{"rendered":"

Yearn.finance’s embattled YFI governance token has been caught within a relentless downturn as of late that has been induced by immense sell-side pressure, a fragmented community and declining protocol value.<\/p>\n

The culmination of these various bearish factors has led analysts to expect significantly further downside in the near-term.<\/p>\n

One trader is now noting that a decline towards $7,500 is likely imminent due to its inability to find any strong momentum as it slides beneath $10,000.<\/p>\n

One recently passed governance proposal<\/a> could bolster its outlook, as it redistributes the protocol’s income so that it goes towards market buying YFI tokens that can be used as community incentives.<\/p>\n

It remains unclear whether or not this will create much buy-side pressure for the token, as the protocol’s earnings have been drying up due to limited liquidity rewards on platforms like Curve.<\/p>\n

Yearn.finance’s YFI Struggles to Gain Momentum<\/strong><\/h2>\n

Over the past few weeks, Yearn.finance’s YFI has been sliding lower and struggling to gain any momentum.<\/p>\n

Bears have been in full control of its price action<\/a> ever since it peaked at highs of $45,000 in early-September.<\/p>\n

These highs came about in tandem with the DeFi sector’s peak, and the relentless selling pressure placed on YFI in the time since has been emblematic of the sector’s weakness.<\/p>\n

At the time of writing, Yearn.finance’s YFI token is trading down just under 6% at its current price of $9,400.<\/p>\n

This is around the price at which it has been trading throughout the past few days and weeks.<\/p>\n

Because it is now trading firmly below its key $10,000 support level, there’s a decent chance that significantly further downside could be imminent in the near-term.<\/p>\n

Trader Targets Move to $7,500 as YFI Shows Continued Weakness<\/strong><\/h2>\n

YFI’s recent weakness is showing few signs of slowing down, as each relief rally has been heavily sold into.<\/p>\n

Until the Yearn.finance ecosystem can begin capturing more value and directing that value towards those staking in the yVaults, there’s a strong possibility that further downside will be imminent.<\/p>\n

One analyst stated in a recent tweet<\/a> that he is targeting a move down towards $7,500 in the near-term.<\/p>\n

\n

“YFI – Short retest of $10,250. Target $7500,” he said while pointing to the below chart.<\/p>\n<\/blockquote>\n

\"Yearn.finance\"<\/p>\n

Image Courtesy of Mac. Source: YFIUSD on TradingView<\/a>.<\/pre>\n
Unless there are serious underlying changes to the Yearn.finance ecosystem, there’s a strong possibility that further downside is imminent<\/a>.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/a>.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Yearn.finance’s embattled YFI governance token has been caught within a relentless downturn as of late that has been induced by immense…<\/p>\n","protected":false},"author":1,"featured_media":5308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[126,188,127,123],"class_list":["post-5307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-yfi","tag-yfibtc","tag-yfiusd","tag-yfiusdt"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5307"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=5307"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/5307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/5308"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=5307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=5307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=5307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}