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.
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.
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