Yearn.finance (YFI) Won’t Look Good Until It Secures $16k, Analyst

Yearn.finance (YFI) has been one of the worst-performing assets over the past few weeks. As this outlet has reported, the coin has plunged in excess of 70% from its all-time high, as it reached lows of $12,000 after peaking at $44,000 just weeks ago.

Sam Bankman-Fried, CEO of FTX, pinned the drop to three trends: a correction in all of DeFi, negative PR events, and yield farming yields dropping in the near term.

While these factors have begun to subside as buying pressure has returned to the crypto market, investors are still not convinced that YFI is ready to move back higher.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Yearn.Finance’s YFI Must Secures $16,000 To Reclaim Technical Position

One crypto-asset analyst recently shared the chart below. It shows that while the leading Defi coin has crossed above a pivotal four-hour downtrend level that has suppressed price action for the past few weeks, the coin is not yet in a bullish technical position:

“People looking at the broken 4h diagonal for $YFI as the catalyst for a full reversal have very short memories. Nothing remotely attractive about this until it breaks $16k.”

Others say that it looks on track to drop under $10,000 as the macro market structure has yet to form signs of bullish recovery.

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Source: YFIUSD from TradingView.com. Analysis of the coin's price action over the past four weeks by crypto trader Cold Blooded Shiller (@ColdBloodShill On Twitter)
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Fundamentals Strong

Fortunately for YFI holders, the fundamentals of the underlying protocol and the coin itself are strong.

CEO of Ethereum-focused data analytics firm Nansen, Alex Svanevik, recently pointed out that his firm’s data indicates that Polychain Capital just bought around $5 million worth of the coin. This is the first time that YFI has entered the known wallet of the top crypto fund, one of the most prominent in the space.

Adding to this, ongoing testing is taking place with Yearn.finance’s v2 Vaults, which will unlock another level of yield farming for depositors. This should help to drive YFI’s revenue higher as well as there is a performance fee charged, along with a withdrawal fee on some deposits.

Whether or whether not the coin hits a new all-time high soon, though, remains to be seen. Some analysts think there are still some bearish market factors like the negative PR events of the past month that will limit 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) Won't Look Good Until It Secures $16k, Analyst

This post was originally published on www.newsbtc.com