Yearn.finance has seen a decent rebound from its recent lows set just a few days ago.
Its ongoing upswing is coming about as Bitcoin and Ethereum consolidate, which indicates that it may be breaking its recent downtrend and beginning to navigate higher as many altcoins start catching some tailwinds created by BTC and ETH’s recent upswing.
There are still some underlying problems that are hampering YFI’s growth, with the Yearn ecosystem currently being caught within a vicious cycle limiting how much value is captured by the token.
Furthermore, the founder’s risk that has been priced into YFI may also be limiting its near-term upside, as Yearn founder Andre Cronje has been playing with multiple experimental projects that have cost speculators significant sums of capital.
There is one key technical level that, if broken, could send it rocketing significantly higher in the coming few weeks.
A further rejection at this level could spell trouble for its near-term outlook and lead to further downside. One analyst is even pointing to $6,000 as a potential downside target.
Yearn.finance Struggles to Gain Momentum Despite Bullish Market
Yearn.finance’s YFI token is currently trading up 5% at its current price of $14,500. This marks a notable surge from its multi-day lows of $13,000 set just a few days ago.
It is important to note that it is still caught within a consolidation phase, as it has been trading around its current price for