Yearn Finance (YFI) saw a very decent uptick in December, even as the broader crypto market reported a dip in sentiment. But it seems the coin has lost some of that upward momentum. Although there is still an upside for growth, it looks highly unlimited. YFI could plunge towards $25 000 in the coming days as a result. Here are some of the highlights so far:
Despite seeing a bullish surge, YFI has entered a downward spiral, losing nearly 17% over the last 7 days.
At the time of writing, YFI was trading at $29,919, down over 10% in intraday 24-hour trading.
There appears to be significant bear pressure on the coin, and estimates show a near-term plunge.
Data Source: Tradingview.com
Yearn Finance (YFI) – price action and analysis
Analysts are becoming increasingly bearish about YFI. There are several reasons for this. First, after recording significant gains in December, the upward trajectory has somewhat stagnated. We were looking to see how long YFI could test the overhead resistance of $33.750 but the coin has since fallen sharply from there and is trading at below $30, 000.
Also, a look at the chart shows YFI is significantly overbought, leaving very little room for a bullish upside. In fact, the RSI is well into bear market conditions. For this reason, we expect YFI to show some weakness in the price action in the coming days, pushing it well towards $25 000.
Should you buy Yearn Finance (YFI)
Right now, it would be best to wait a bit. The downtrend expected could give investors the chance to buy YFI at a discount. And since this is a promising DeFi project that has superb long-term potential, getting in while the price is low is always highly advised. Just give it a few days and see how the price action plays out.