The continuous introduction of new products could strengthen Yearn.finance price survivability over the long run
As of September 12, the Yearn.finance (YFI) price has dropped from $ 43,937 to as low as $ 26,222. YFI’s 40% decline within eight days caused other Y tokens (such as DFI.Money (YFII), YFLink (YFL), YFValue (YFV), …) also free fall; even more strongly than FYI in the past week.
DeFi market is taking a break, what will Yearn.finance price look like?
As mentioned above, YFI has dropped 40% from the previous week but has risen 450% since mid-August. At press time, YFI price has fallen almost 20% over the last 24 hours, trading around at $ 23,936. This shows that YFI’s drop below the $ 31.525 support makes it more susceptible to a decline.
On-chain analyst Nik Yaremchuk said:
“YFI is also included in the list of assets I watch, so I’ll periodically review Price Action. The analysis is quite simple, we’re consolidating here and continue to rise or fall to $20k.”
$YFI is also included in the list of assets I watch, so I’ll periodically review Price Action.
— Nik 🐉 (@truenomic) September 19, 2020
The $ 31.525 zone is particularly crucial for YFI as it marks the 20-day moving average (the 20-day MA) of the 1-day chart. Losing the MA on the high timeframe chart is considered a sign of a short-term downtrend in technical analysis.
While YFI could see weakness in the short term, some investors believe that Yearn.finance’s long-term outlook remains intact.
When asked about the longevity of the DeFi token, Kelvin Koh of Spartan Group said it depends on three factors.
“It depends on whether: 1. we get bubble conditions like in 2017; 2. DeFi can continue to innovate and build real products and bring in mainstream users; 3. Any regulatory headwinds. Given the subset of projects ATM, YFI would be considered a blue chip.”
YFI is facing a slight technical pullback in the near term. But in a long time, Yearn. finance’s pace of innovation and product launch remains optimistic.
Andre Cronje, YFI founder and lead developer of the project, said the project would continue to be healthy. In it, Yearn.finance released SyntheticRebaseDollar on September 17 – one of its newest products. SyntheticRebaseDollar allows users to deposit cryptocurrency, like Chainlink, and track token value.
The continued introduction of new products and services on Yearn.finance will likely reinforce its viability in the long run.
On September 20, despite YFI’s sizable pullback, a whale placed a buy order of 49 YFI on Binance for $ 32,000. After the execution, $ 1.3 million of YFI’s value belongs to him (or her).
— Whale Alert (@whale_alert) September 21, 2020
Whales accumulate YFI despite corrections on multiple DeFi tokens suggesting some whales are confident in their long-term trajectories.
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