The new trading week in the Yearn.Finance market began with a total price collapse to $28,320. In two days, the price fell by 35% and tested the main buyers’ support zone of $28,000-32,000.
However, the YFI collapse was not an isolated case in the DeFi ecosystem. The entire crypto market politely surrendered to Bitcoin and followed it for correction.
After falling by 22% in two days, the BTC market showed that caution is the main term that cryptocurrency market players must learn. In the previous article, we wrote that the YFI market seeks to continue to grow to $58,000.
Though, buyers took the initiative in the market earlier, testing the mark of $53,000. The YFI price has stopped within the lower trend line of the wedge, which gives a chance to think about the formation of a new growth wave. Therefore, we will not rush to such conclusions.
Sellers Losing Control Over Range of $40,600-41,600
The critical point in the YFI market is now the range of $40,600-41,600. This range can be a good foundation for sellers to continue the YFI price fall.
If buyers are unable to fix above this range during the current counterattack, we will expect the market to continue to fall with a target of $21,000.
If you pay attention to the trading volumes, due to which sellers reduced the price – it seems that there are few buyers in the market who are willing to buy YFI at current prices.
Pay attention that with low volumes the price without problems fell to the critical range of $28,000-32,000.
Thus, there is a high probability that buyers will not keep this range after the next attack.
In this case, the YFI price will continue to move within the white limit and we will expect a repeated test of the historical high:
Yearn.Finance to Show Strength to Test Historical Highs
The positive scenario in the YFI market should be considered only after fixing above $40,600-41,600.