Yearn.finance (YFI) has undergone a strong retracement since recent highs, dropping under $30,000 since setting a $44,000 high just days ago. The coin currently trades at $28,000 as of this article’s writing, far below the aforementioned highs.
This drop comes as Bitcoin and Ethereum underwent a strong rejection at the local highs. Other decentralized finance coins have also started to plunge, with the air being sucked out of this segment of the crypto market.
Here’s a crucial level YFI analysts are watching as the leading cryptocurrency continues to slip lower.
Yearn.finance (YFI) Must Hold $25,000
Analysts say that the coin must hold $25,000 moving forward or risk a stronger rejection to the downside. $25,000 is important for Yearn.finance because it is an important technical level and also a psychological level for investors in the Ethereum-based crypto.
One analyst shared the chart below, which suggests that if YFI can maintain the $25,000 support, a strong move back towards the highs could be had:
“$YFI is clearly getting distributed here. Waiting for $25,500 for possible entry.”
Chart of YFI's price action over the past few weeks with analysis by crypto trader and chartist Mac (@MacnBTC on Twitter). Chart from TradingView.com
This was echoed by Edward “Teddy” Cleps, the founder of Yellow Block and a crypto analyst. He shared a similar chart of YFI to that of the aforementioned trader, seen below.
The chart shows that Yearn.finance should hold the $25,000 support to maintain the bull trend it has formed.
Chart of YFI's price action over the past few weeks with analysis by crypto trader and chartist Edward Cleps (@TeddyCleps on Twitter). Chart from TradingView.com
Long-Term Fundamentals Still Positive
The fundamentals of the coin are still positive despite any weakness in the short-term price action.
Crypto fund Mechanism Capital, headed by prominent DeFi analyst Andrew Kang, recently made the following analysis of YFI, trying to frame it in a discounted cash flow model:
“Our bullish DCF case yields prices of $241k and $315k, depending on whether a performance fee is applied to yToken revenue.”
This was their “bullish case” for YFI, but they noted that there is a good probability it will play out due to “the growth of stablecoins & vaults that we have already witnessed and the fact that we have only implemented a fraction of potential strategies that are planned we do not believe that this scenario is out of the question.”
Featured Image from Shutterstock Price tags: YFIUSD, YFIBTC, YFIETH Charts from TradingView.com Here's the Pivotal Support Yearn.finance (YFI) Analysts Are Watching Amid 30% Drop
Credit: Source link
