YFI won’t improve until it secures the $16K level as it now became the worst performing asset over the past week. As the reports show, the coin dropped about 70% from the all-time high and reached lows of $12,000 after hitting $44,000 weeks ago. In our altcoin news today, we take a closer look at the price analysis.
The CEO of FTX, Sam Bankman Fried, pinned the drop to three trends like the correction in all Defi, the yield farming yields dropping in the near term and the negative PR events. While these factors started to subside as buying pressure returned to the market, investors are still not convinced that the YFI is ready to go back higher. One crypto-asset analyst shared a chart where it shows that the leading Defi coin crossed above the pivotal four-hour downtrend level which suppressed price action for the past weeks as the coin is not yet in a bullish position and believes that YFI won’t improve unless it reaches the $16K level:
“People looking at the broken 4h diagonal for $YFI as the catalyst for a full reversal have very short memories. Nothing remotely attractive about this until it breaks $16k.”
— Alex Svanevik 🧭 (@ASvanevik) October 17, 2020
Others say that it looks on track to drop under the $10,000 level as the macro market structure still has time to form signs of bullish recovery. Fortunately for the YFI holders, the fundamentals of the underlying protocol and the coin are strong. The CEO of ETH-based data analytics company Nansen, Alex Svanevik pointed out that this company’s data explains how Polychain bought around $5 billion worth of the coin which is the first time that YFI entered the known wallet of the top crypto fund which is among the most prominent ones in the space.
People looking at the broken 4h diagonal for $YFI as the catalyst for a full reversal have very short memories.
Nothing remotely attractive about this until it breaks $16k. pic.twitter.com/oBk7gGXxew
— Cold Blooded Shiller (@ColdBloodShill) October 18, 2020
Adding to this, the ongoing testing is taking place with the v2 Vaults of yearn.finance which will unlock another level of yield farming for depositors. This will help to drive YFI’s revenue higher as well as the performance fee charged along with withdrawal fees on some deposits. Whether or not this coin will hit a new all-time high, it remains to be seen. Some analysts think there’s still some bearish market factors like the negative PR events of the past few months that will limit the upside.
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