Yearn.finance’s price action has been far from bullish over the past few weeks, with bears aggressively selling into each price pump as buyers continue struggling to gain any traction.
There are many different factors behind this descent, including a downturn seen across the aggregated DeFi space, a fractured community, and founder risk that is growing by the day.
Adding to this confluence of erased all of the gains that it incurred over the past few days.
After plunging to $13,000 late last week, news of Polychain acquiring a large $5m YFI position sent its price rocketing to highs of $16,000.
The sentiment boost this news provided didn’t last long, as the rejection at $16,000 – coupled with the downturn seen amongst virtually all altcoins – has sent its price reeling back to its $13,000 lows.
This is slightly above Yearn.finance’s multi-week lows of $12,000 set during the capitulatory downturn seen just a couple of weeks ago.
This Technical Pattern Could Drive YFI Significantly Lower
While sharing his thoughts on where Yearn.finance’s YFI might trend next, one analyst explained that a descending triangle formation indicates a move to the sub-$7,000 region could be imminent.
“The goddess of YFIUSD on TradingView.