A death zone is near for Yearn.finance as it nears the sub -$12,000 level with analysts noting more downsides. The YFI governance token has been facing a huge selloff over the past few days and weeks with the bulls being unable to garner any momentum so let’s read more in today’s altcoin news.
There were many reasons why it has been so hard for the coin despite the bullishness seen by Bitcoin and the rest of the market but the latest selloff has come about because of the weakness seen by the entire market. one analyst even noted that the cryptocurrency is approaching a dangerous price region with the support in the lower $12,000 region being vital. If it breaks below here, YFI could see a huge selloff that will force the price to decline below $10,000 which will be a technical development that will strike a strong hit to the mid-term outlook. The analyst is calling this region a “death zone” for the cryptocurrency.
With Bitcoin showing immense signs of weakness, there’s a decent chance that a decline beneath this level is imminent in the near-term. Yearn.Finance’s token is trading over 4% with a current price of $12,900 which is one of the lowest prices recorded in the time since it set the $45,000 peak a couple of months ago. There were multiple factors contributing to the weakness like the Defi downturn with less value being captured by the token due to the increased yields on Curve and the fragmented community as well.
These factors’ confluence put huge pressure on the crypto’s price and there’s no end in sight to the downturn. Even Bitcoin’s recent uptrend did little to create a tailwind for the altcoins such as YFI. While sharing his thoughts on the near-term trend, one analyst explained that he believes the cryptocurrency is entering a “death zone.” The trader further said that there’s no reason to be bullish on the cryptocurrency in the short-term:
“It took a while but looks like YFI is finally approaching the sub 12k death zone. Expect deep panic selling below 10k. Yields continue to stagnate and drop, don’t see any reason to be bullish short to mid term.”
In the upcoming few days we should find out more about the mid-term outlook as the response to the lower region will offer insight into the technical strength of the coin.
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