Yearn.finance used to be the darling of the DeFi sector, with investors pouring massive sums of capital into the YFI token while largely looking towards it to become one of the largest and most widely used platforms within the decentralized finance ecosystem.
The sentiment surrounding the Yearn project began to shift a few weeks ago, however, after the founder lured investors into an experimental smart contract project he was developing that resulted in 50% of their funds being lost.
Although he didn’t directly encourage users to manually call the contract to mint tokens, he did drop multiple teasers on Twitter that inevitably led to this happening.
Investors then began pricing “founder risk” into the Yearn.finance governance token’s price, which caused YFI to slide lower.
A fragmented community compounded the weakness this sparked and has since led its price significantly lower.
One analyst is now noting that Yearn.finance’s bullish market structure has now been nullified and that further downside could be imminent in the near-term.
Yearn.finance (YFI) Reels Towards $13,000 as Selling Pressure Persists
At the time of writing, Yearn.finance’s YFI governance token is trading down marginally at its current price of $13,500.
This is just a hair above its post-high lows in the $12,000 region that were set during its recent capitulatory selloff.
The lack of buy-side pressure does seem to indicate that a move down to these recent lows could be imminent in the near-term.
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