More warnings flashed for Yearn Finance’s governance token YFI even as it showed signs of recovering after an upside weekend session.
Market analyst Teddy Cleps envisioned a waterfall-like trend for YFI/USD, noting that the pair is likely to continue trading lower with anticipations of bouncing back on every support-retest. He further hinted that price floors might trick traders into believing that YFI has bottomed out, but the support with the best possibility of beginning a strong rebound lies $8,000 below the current price levels.
YFI bearish outlook, as presented by Teddy Cleps. Source: YFIUSD on TradingView.com
“[I’m] waiting for 1) Retrace, and 2) Buying contact with resistance (hopefully new support), [followed by] Invalidation back below the dotted line,” tweeted Mr. Cleps. “Patience is key, no need to rush this.”
The analyst appeared confident about YFI’s long-term aspects as a financial asset. Nevertheless, his short-term outlook for the decentralized finance token raised worries about the long period it would take to pare all the losses back to its record high near $44,000.