Calls for a sharp rebound in the YFI market are growing after the token’s 56 percent decline in the last ten days.
At least three independent analysts have provided credible support ranges for YFI/USD in the last 24 hours, a period that has also seen the pair dropping by 18 percent to circa $ 14,700. A pseudonymous entity, for instance, expects YFI to plunge towards $ 7,000 before it retains its medium-term upside bias.
YFI trade setup, as presented by HerroPreez. Source: TradingView.com
Another one – also using an alias name – meanwhile noted that YFI could hold onto 12,000-15,600 and prepare the range as its base for the next upside run.
“YFI has finally reached the 12K-15.6K area YFI will try to find some support within this region after a total of 9 down-days over the past 11 days,” he tweeted on Wednesday.
YFI may undergo a dead cat bounce near $ 11.000, as per DonAlt. Source: TradingView.com
Meanwhile, another one believes the next rebound may turn out to be a “dead cat bounce,” while placing the support range above $ 11,000.
“I still think there is a good chance this just keeps dropping but a little relief would make sense before that happens,” the analyst wrote.
In just 10 weeks, Yearn Finance, the protocol behind YFI, has developed from a simple yield aggregator into a multifaceted decentralized finance ecosystem.
While, on one hand, Yearn is managing more than $ 600 million through its asset management platform, on the other, it offers insurance, venture capital, decentralized exchange, lending, and stablecoin products. In a nutshell, Yearn is a growth-oriented startup.
That serves as one of the reasons why YFI surged from zero to $ 40,000 within days of launch. The more Yearn Finance earns in fees via its range of products, the more benefits it would be able to pass to its governance token holders.
“Builders in DeFi should start fearing Yearn like startups fear Amazon,” read a report from Messari published mid-September. “It’s only been 8 [now 10] weeks since the world learned about Yearn and it’s already invading every major market on Ethereum. The DeFi ecosystem needs to take note.”
Nevertheless, the fundamentals haven’t helped YFI much in the last few weeks. The token plunged due to its overbought status – and also as the rest of the cryptocurrency market assets dived lower from their year-to-date highs.
But, unlike SushiSwap, which lost people’s trust after facing “exit scam” allegations, Yearn Finance promises to stay longer.
“YFI didn’t need 100K transactions per second or super-advanced quantum-resistant bulls**t Nor did it need any ideology They have a great product and built for today, not tomorrow,” noted one analyst.
YFI was trading at $ 14,736 at the time of this writing.