Yearn Finance is a DeFi platform which aims to simplify the yield farming for their users. Yield farming is a process by which users earn interest by staking cryptocurrency on various DeFi protocols. Yearn Finance played a significant role during the boom of Defi in 2020.Yearn Finance helps their customers by automating the yield farming process through its platform.
It allows users to deposit their cryptocurrency into a single pool, which is then automatically distributed across multiple DeFi protocols in order to maximize yield. YFI’s easy to use interface makes it an attractive platform for the general users.. One can deposit their crypto by a few clicks and the platform takes care of the rest. It helps the newbies who want to maximize their yield without going into the expertise of Defi. YFI is down by more than 93% from its all time high.
Yearn Finance has a market cap of $266 Million and is ranked 125th in the cryptoverse. The TVL of YFI is around $409 Million which is growing consistently. Volume to market cap ratio of YFI suggests a consolidated trend in price.
YFI Bears Are Pushing The Price Down
Yearn Finance has been in a downward momentum for a long time. The weekly technical chart of YFI suggests a consolidated trend in price. On the daily chart it is trading near the value of $8192 with a gain of 1.4% in the intraday session. It is trading in a downside parallel channel and can continue this bearish momentum. Resistance of YFI can be seen near the value of $10000.Meanwhile the support of the asset price can be seen near $6000.It is trading below the 50 and above 100 Daily Moving Average. There can be a negative crossover which can push down the price to a new low in the future.
MACD of the YFI suggests a bearish momentum in the price. Signal lines and Histogram of MACD are favoring a downside trend in price.
Conclusion
Yearn Finance is moving in a downside parallel channel which can push the asset price to a new low.Various analysts are expecting a strong upside trend in the future.
Technical Levels
Major Support: $6000
Major Resistance: $10000
