The DeFi trend is finally dying down, and it has left even the once hottest and most hyped coins reeling in the wake. Yearn.Finance, for example, was once trading at over $40,000 and four times the price of Bitcoin. Now, it could be headed for just half a BTC per YFI token, where one career trader claims the altcoin will be a “strong buy.”
Here’s how the once piping hot DeFi token might get there.Yearn.Finance Carnage Continues, But Will Make An Ideal HODL Eventually
Yearn.Finance was one of the hottest tokens of the summer of DeFi. FOMO only recently began to fizzle as the summer’s sizzle started to cool off, and investors began to worry about the upcoming election and began moving profits into the now trending Bitcoin.
Related Reading | DeFi Hangover: Yearn.Finance Falls Nearly 20% From Weekend Highs
Loukas shares his calls and ideas on crypto Twitter, and today posted a chart of YFIUSD that shows the ominous head and shoulders top that anyone who is interested in the asset at all should have seen by now. Except rather than talking trash about the falling Yearn.Finance, he says it’s a “strong buy.’
Yearn.Finance falling wedge retest and math matches Loukas' target | Source:
YFI Charts, Patterns, And Math Create Roadmap To Loukas’ Strong Buy Support
Yearn.Finance has already fallen 78% from peak to the current bottom, so a drop to $7,000 would likely shock early investors who expected the scarce asset to charge toward $100,000, not $10,000.
Related Reading | Coinbase Users Lose $25K On Yearn.Finance Since DeFi Token’s Debut
When assets reverse, they tend to reach around 50% – also the 0.5 Fibonacci level – of the previous advance before another leg down.
The current reversal and break out from a potential falling wedge pattern could take Yearn.Finance 50% of the way, or potentially all the way back to the neckline. If the DeFi coin falls back from the halfway point, another 52% decline would fall exactly where Bob Loukas points to as a “strong buy” for YFI.Interestingly, the complete downtrend from $44,000 to just $7,000 would result in a full 84% decline – roughly the same exact retracement as Bitcoin after it peaked at $20,000.
Featured image from Deposit Photos, Chart from TradingView.com
