After Yearn.finance (YFI) hit its all-time high, the price dropped for the entire week as buying pressure eased.
With this decline, the crypto currency, which previously served as a solid support and fell below very important support levels, reached the level considered as the “last support” for many analysts. With the break of this support, its investors may face much more losses in the coming days.
The main reason for this decline is the combination of factors such as the weakness of the DeFi platform and the growing hostility in the cryptocurrency community against the Yearn founders. Despite the dire outlook, an analyst said he believes the support just below where it is currently traded may be enough to keep the coin from further disadvantage. Also, the same analyst argues that the rally is imminent, which will soon create a relief.
At Yearn.finance (YFI), sellers are taking control and trying to dampen the buying pressure. With the recent declines in YFI, the vast majority of earnings for some time have been erased.
The popular DeFi token was caught on investors’ radar at less than $ 1,000 with the start of the initial DeFi investments, and as the majority of the retail investor base began to form the foundation of the DeFi industry, it was over $ 10,000.
At the time of writing, YFI is trading at $ 14,900, but this level is significantly lower than the all-time high of $ 45,000.
Popular Analyst: YFI Could See A New Rally Soon
While sharing his views on the short-term outlook for YFI, an analyst argues that support in the low-$ 14,000 zone may be enough to start a relief rally in the short term.
“The increase in YFI was faster than expected. The closer it is to the support level, the more likely it is to bounce. ”
Especially with the popularity of DeFi tokens last summer, many investors diverted their assets into the DeFi ecosystem. During this time, many DeFi tokens have made high gains. YFI is among the cryptocurrencies that have similarly made high earnings, but the decline in recent weeks has caused many investors to lose.