Yearn.finance price has decreased by nearly 18% in the past 24 hours, further downside could be imminent in the near-term

Yearn.finance (YFI) price has been subjected to immense volatility over the past few days. A variety of different factors have played a role in this, including a myriad of community drama coupled with continued weakness across the aggregated DeFi sector.

This catalyzed a capitulatory selloff that sent the DeFi giant reeling down to lows of $16,000 earlier this week, which came about in the form of a violent decline that was followed by a sharp “v-shaped” recovery to over $20,000. This recovery has been short-lived, however, as YFI is now in the process of reeling lower once again as the entire space continues seeing heightened weakness.

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Source: TradingView

Yearn.finance price posts another rejection at $20.000 as outlook dims

At press time, Yearn.finance is trading down over 17% at its current price of $ 15.544. This marks a notable decline from its daily highs of nearly $ 21.000 that was briefly tapped around this time yesterday. YFI hit these highs after it rebounded from lows of $ 16.000. Whether or not it is able to continue higher in the near-term depends largely on how ardently bulls defend the support at $ 16.000.

If broken below, YFI could start an intense descent that sends it down to lower-lows around $ 15.000 and $ 13.000. Although its price is sliding lower, the Yearn.finance ecosystem is stronger than ever, and its underlying value may soon outpace that of YFI’s price.

Because YFI is widely viewed as an index bet on all of DeFi, whether or not it rallies higher or plunges lower could depend on the performance of the entire sector.

While speaking about the cryptocurrency’s mid-term market structure, crypto trader Teddy observed that it has formed a triple top pattern, which typically represents a macro high for an asset. As such, YFI token could be positioned to see some notable downside in the days and weeks ahead.

He stated:

“Looks like he wants to come back down… pumps postponed till further notice.”

yearn-finance-price-has-decreased-by-nearly-18

As seen on the above chart, it does appear that the trader is targeting a move down towards $15,000.

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