The Yearn.finance price is bouncing back after it crashed to a monthly low of $24,317 on Tuesday. The YFI is trading at $31,866, which is 66% below the highest level this year. This drop has brought its total market capitalization to more than $1.16 billion, making it the 64th largest cryptocurrency in the world.
What happened? Yearn.finance is a growing blockchain Decentralized Finance (DeFi) project that is disrupting the lending and investing industry. The platform provides a lending aggregation, yield generation, and insurance. It was built using Ethereum’s blockchain and is the 7th-biggest DeFi in the world after Aave, Curve Finance, Compound, Maker, InstaDapp, and Uniswap. It has a total value locked (TVL) of more than $3.88 billion.
Like all cryptocurrencies, the YFI price has retreated in the past few days as investors continue worrying about regulations, high-interest rates, and the ongoing China crackdown. Today, the coin’s price is in a relief rally as investors react to the relatively dovish tone by Jerome Powell of the Fed. So, will the relief rally of Yearn.finance price continue?
Yearn.finance price analysis
The daily chart shows that the Yearn.finance price has been in a sharp sell-off. To be fair, this is a pattern experienced by all cryptocurrencies including Bitcoin and Ethereum. The coin has already dropped below the 61.8% Fibonacci retracement level and is lower than the 100-day and 50-day exponential moving averages.
It has also formed a descending channel pattern that is shown in blue. In my view, this is not the end of YFI sell-off. I expect that the price will continue moving in a bearish trend so long as it is below the two moving averages and the 50% Fibonacci retracement level at $50,750.
YFI price chart
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