Yearn.finance’s short-term outlook has been grave, with bears being in full control of its price action as buying pressure begins drying up.
The cryptocurrency’s recent descent has come about due to a myriad of different factors, including heightened founder risk, a fractured community, as well as the overall downturn in the DeFi sector.
Additionally, relatively low rates being provided to liquidity providers has caused the yVaults to see incredibly low usage, which has also struck a blow to the embattled Yearn ecosystem.
Analysts are now noting that despite the short-term outlook of YFI being somewhat grave, there’s still a strong bull case to be made for its macro outlook.
One analyst compared the money locked within DeFi to that locked within traditional finance initiatives that provide yields on deposits, noting that the masses will likely eventually turn towards platforms like Yearn.finance (YFI) and Aave.
Yearn.finance Continues Drifting Lower as DeFi Downtrend Persists
At the time of writing, Yearn.finance’s YFI governance token is trading down nearly 3% at its current price of $14,200.
Yesterday, bulls attempted to reverse its downtrend when they pushed it up towards $16,000, but the immense selling pressure seen by the aggregated market due to funds being locked within OKEx struck a serious blow to its market structure.
It dropped as low as $13,600 before finding some support and is continuing to see some slight weakness today.
The entire DeFi market is continuing to struggle