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.
The token that was once worth four times as much as one full BTC, is now trading nearly on par with the leading cryptocurrency by market cap. In fact, the DeFi coin with a 30,000 token supply that was previously worth over $40,000, is now trading $2,000 below Bitcoin, and it could fall much lower, according to career trader Bob Loukas.
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.’
The only problem with Loukas’ statement is that the strong buy occurs when the token trades at $7,000 per YFI.
Yearn.Finance falling wedge retest and math matches Loukas' target | Source: YFIUSD on TradingView.com
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…