It has been a very rough week for most cryptocurrencies, especially in the altcoin segment. Even YFI, the native Yearn.Finance token, is unable to overcome a recent 30% dip. One has to wonder when the YFI price bottom will be reached, and if the market can even recover.
YFI Price is Moving Down
It is not uncommon to see alternative crypto assets go down in value when the overall market goes into sideways trading. The sideways momentum has been apparent for some time now, creating a fair bit of unease. For the YFI price, it has resulted in a net 30.7% loss in the past week. The asset is still up by over 108% in the past month, thus everything needs to be put into perspective.
What is worrisome is how YFI is dropping in value across the board. Its USD, BTC, and ETH value is plummeting hard in the past week. Catching this falling knife will be a tough balancing act for those who bought in at $43.600 and more. Despite the negative momentum, Yearn.finance maintains a diluted market cap of $765 million. A recovery isn’t out of the question just yet.
Gauging the Social Momentum
Social interaction plays a crucial role for crypto assets. This is even more important where DeFi assets are concerned, due to the sheer amount of competition. For Yearn.Finance, there isn’t too much to worry about, although the YFI price bullish momentum has dropped below 59% in the past seven days.
Other statistics look slightly better. Social volume, engagement, contributors, and dominance are all up compared to one week ago. If those are any indication, the YFI value may see a nudge in the near future. Whether it will be a temporary nudge, or a permanent reversal, is difficult to predict under the current circumstances.
Some Interesting Developer Activity
Looking at the current developer activity for Yearn.finance, things seem to be heating up a bit. There have been 70 commits in the past 90 days, indicating the developers are still working on new features or ongoing improvements. Active developers can often trigger a higher YFI price, depending on what they are working on exactly.
Speaking of these commits, it appears over 10,500 lines of code were added, and 11,519 lines have been removed. It is difficult to determine what these changes entail exactly, but it goes to show the project is still evolving on a daily basis. It will be interesting to see what the future brings for this particular project.
YFI Price Technical Indicators
Judging by the current YFI/USDT chart, things are certainly not looking all that great. TradingView has the asset in “strong sell” territory for some time now. The ongoing decline from $38,000 to where the price is currently will have something to do with that. It may take a while until the YFI price can start to recover.
As there aren’t too many indicators to go by, it’s difficult to determine the future market direction. The MA20 is angling down, which is never a good sign. As the RSI is currently going down even further, one has to expect more volatility in the near future. Which direction the price will move in, remains to be determined.
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