Yearn.finance (YFI) Invalidates Bullish Market Structure; Analysts Eye Further Losses

Yearn.finance (YFI) Invalidates Bullish Market Structure; Analysts Eye Further Losses


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.

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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

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