Yearn’s YFI token faces a drop towards $9000 as the technicals remains weak, continuing to drop lower despite strength in the BTC price. In our latest altcoin news, we are taking a closer look at the price analysis.
While BTC crossed above $14,000 once again on Tuesday as the price of the popular altcoin dropped towards $9000. As of the time of writing, YFI is down by 7.5% over the past 24 hours and trades for $9300 which are multi-month lows. Analysts fear that the coin will drop even lower in the upcoming days despite the technical outlook remains weak. The analysts expected the coin to shoot up at $10,000 but failed to do so even with the short squeeze which was preparing on the horizon. Analysts fear that the coin could retrace to $7000 in the weeks ahead as the coin got rejected at $10,000. The charts show that the pivotal rejection and the retracement is going to happen again.
Another analyst Edward Teddy Cleps shared another chart showing that the next support level for the coin is in the $6000 region. this region is where the cryptocurrency initially found a top on the Binance crypto exchange it was listed on the exchange. Yearn’s YFI token saw some positive fundamental developments with the introduction of new vaults and strategies, drive fees to the holders, and TVL to the protocol.
$YFI 👀 pic.twitter.com/YMvESkEbXr
— Alex Svanevik 🧭 (@ASvanevik) October 17, 2020
The well-known crypto-asset fund Polychain Capital run by the first employee at Coinbase that recently purchased $4.5 million worth of the coin. Poliychain Capital is one of the few prominent funds in the space that has a huge stake in the leading altcoin which was acquired en-masse as it can govern Yearn.Finance and provides cash flows for the holders. Analysts are still expected to roll out Vaults v2 in the near future which will drive the protocol further to the upside.
As reported previously, The analysts noted that there’s a drop below $10,000 in the cards and it could come quite soon if the bulls cannot take control of the price action. With all that being said, a new proposal could save the coin from dropping. The proposal named “Rethinking Capital Allocation” suggests that the income of YFI should no longer be distributed to stakers but it could be used to buyback YFI tokens on the open market. this will provide a constant stream of buying pressure on the token and it could help to stop the downtrend and give it some momentum.
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