Yearn.finance’s governance token YFI saw a notable rebound from its recent lows overnight, which comes as sentiment surrounding the crypto remains incredibly low.
A fragmented community coupled with a lack of momentum in the aggregated DeFi space has created serious headwinds for YFI, which is now trading down well over 50% from its recent highs.
The lack of sustainable upwards momentum seen by the token in recent weeks indicates that its buy-side pressure is evaporating, which comes as bears grow stronger.
Although it has yet to revisit its recent lows of $12,000 set last week, the cryptocurrency could be positioned to see further downside unless there is some unexpected catalyst for a rally.
One trader says that YFI’s uptrend is officially “finished” as its price drifts lower and lower each day.
He believes that it will ultimately descend below $10,000, noting that he won’t be interested in it for “quite some time.”
Yearn.finance Rebounds from Daily Lows, But Shows