The Yearn Finance price suffered heavy losses during this week’s crypto melt-down. The Token (YFI) is fighting back, bouncing 44% from the lows.
The yield farming aggregator broke down through a clearly major trend line support during yesterday’s rout.
The token is closely correlated to other DeFi related assets.
Decentralized finance providers pay a rate of return in exchange for borrowing tokens. This is, in theory, a win-win (although it carries risks), generating an investment yield for token holders and bolstering the balance sheets of Defi lenders.
Yearn Finance finds the best available rates for lenders in a process known as yield farming.
Therefore it makes sense that the Yearn finance price would suffer as the total locked value of DeFi projects decreased.
Yearn Finance Price Outlook
The last 24-hour hours have seen a sharp drop followed v-shaped recovery in the Yearn Finance Token (YFI).
The price has bounced 44% from yesterdays’s low of $34, 275 and is currently attempting to reclaim horizontal support at $50,000.
The 2-hour chart shows us that the price drop accelerated through $61,00 as YFI broke a supportive trend line. This trend, in place from the 10th of May low, now becomes a natural target if the price can hold above the $50k mark.
If the Yearn Finance price fails to hold the psychological support of $50,000, it might suggest a return to the 24-hour low at $34,275.