Yearn Finance prices have been trapped in a significant downtrend in the past week. Analysts predict various factors causing the decline in Yearn Finance’s prices. Regarding this, many analysts are also worried that the decline will have fatal consequences for the development and growth of DeFi going forward.
Factors such as the still weak DeFi sector are believed to have also contributed to the downgrading of Yearn Finance’s governance token. What’s more, the controversy surrounding the Eminence project, another project by the creator of Yearn Finance, Andre Cronje.
Because of this controversy, YFI’s price fell even further. Some analysts predict that after the correction occurs, the YFI price could be far below $ 10,000 within the next few weeks or months.
Yearn Finance Prices Drop Under $ 20,000
According to data from Coingecko, in the last 7 days alone Yearn Finance has fallen by 37.5% and is currently trading around $ 19,000. A fairly low value considering Yearn Finance’s all-time-high value which had hit the $ 40,000 mark.
This has been exacerbated by the selling pressure on world exchange exchanges. Selling pressure on the spot platform and increasing short positions could be a deadly combination and could potentially lead to further decline in prices, according to some analysts.
Analyst: YFI Could Drop To $ 6,000 If It Breaks The $ 10,000 Support Level
An analyst explained, the level of $ 10,000 is included in the crucial level at Yearn Finance. If this level is successfully broken down, it is not impossible that the YFI price will drop to $ 6,000.
“Not a good condition for YFI. (Let’s) aim to at least (hold) around $ 10k, horizontal support is currently below $ 6k, ”tweeted analyst Jonny Moe with the chart below.
If this downturn does occur, analysts fear it will create a drag on the growth of the DeFi sector. What’s more, it could also have a broad impact and affect Ethereum and other major altcoins.
This information was processed and re-edited from NeewsBTC