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%.
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.
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