The Yearn Finance price has been in a strong bearish trend in the past few months. The YFI price is trading at $7,481, which is close to the lowest level since May 25th 2021. In addition, it has fallen by more than 25% from its all-time high, bringing its total market cap to more than $235 million. At its peak, its total market cap was almost $3 billion.
Yearn Finance is a leading decentralized finance (DeFi) that enables people to invest in cryptocurrencies and earn substantially higher returns than in traditional assets. Some of the top-earning cryptocurrencies in the ecosystem are Curve USDN, Curve-ETH, and Curve-CRV. These coins generate over 20% APY.
According to DeFi Llama, the total value locked (TVL) in the Yearn ecosystem has dropped to about $1.14 billion. It had a TVL of more than $5.2 billion at its peak. Most of these funds are in Ethereum, while a small portion is in Fantom and Arbitrum. A closer look at the chart shows that the TVL has declined sharply since May.
This decline accelerated in April when the Neutrino stablecoin lost its peg. It then accelerated in May when the Terra ecosystem continued. These declines disincentivized people from investing in DeFi projects since the coins could disappear.
The daily chart shows that the YFI price has been in a strong bearish trend for months. The decline gained momentum when it moved below the important support at $17,841. This was important support since it was the lowest level in March this year. In addition, the coin has dropped below the 25-day and 50-day moving averages.
The coin has been consolidating while the Average True Range (ATR) has dropped to the lowest point in months, signalling that volatility has eased. Therefore, while the Yearn Finance price has become significantly cheap, it is hard to recommend buying Yearn for now. A move above the key resistance at $17,841 will invalidate the bearish view.
This post was last modified on Jun 09, 2022, 09:00 BST 09:00