Analyst Who Predicted Yearn.finance (YFI) Drop to $14k Thinks $12k Is Next

It’s been a tough past few weeks for the DeFi market, especially for coins like Yearn.finance’s YFI token and the Curve DAO Token. Since setting its all-time high price of $44,000, YFI has corrected by 70%, falling as low as $14,000 earlier today.

An analyst that predicted the latest leg of the correction fears that the Ethereum-based crypto asset is primed to move even lower.

The market seems to be bullish, though, with the YFI futures markets of Binance, FTX, and other exchanges operating on positive funding rates.

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Yearn.finance Could Slip Lower, Traders Fear

After predicting the latest leg of the ongoing YFI prediction to $14,000, a trader asserted that the cryptocurrency is on its way to $12,000. As can be seen in the chart he shared below, YFI falling to $14,000 brings it under an important support level that is suggestive of a further decline to $12,000. The cryptocurrency dropping to $12,000 from current levels will mean it will need to correct 18%.

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Chart of Yearn.finance's price action over the past four days with analysis by crypto trader TraderSZ (@Trader1sz on Twitter). Chart from TradingView.com
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Fundamentals Still Positive

Despite the clear loss of momentum in the price of YFI, analysts remain more optimistic than ever about the project.

Andrew Kang, the founder of Mechanism Capital, recently noted that those that think Yearn.finance is now a valueless project due to declining yields are “missing the forest for the tree. He highlighted that the project’s developers have a series of strategies to roll out that will allow it to generate relative value over other DeFi platforms.

“The argument that YFI / Yearn value is dependant on crazy yields is missing the forest for the trees. Yield opportunities continue to grow Future strategies: – 10x-100x leveraged short DAI – Basis/Funding trades – UNI Farming – BAL Farming – L1/L2 Liquidity Bridging – etc.”

This is just Yearn.finance’s longer-term outlook. On a short-term basis, Yearn.finance developers have begun the development process for “v2 Vaults.” These new Vaults purportedly will be much more scalable and profitable than the previous iterations.

The launch of Vaults should allow more value to be put in the hands of YFI holders. This should entice investment in the cryptocurrency despite it already dropping over 65% from its all-time high set just weeks ago.

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Photo by Anna Elizabeth on Unsplash
Price tags: yfiusd, yfibtc, yfieth
Charts from TradingView.com
Analyst Who Predicted Yearn.finance (YFI) Drop to $14k Thinks $12k Is Next

This post was originally published on www.newsbtc.com