Yearn finance trader says YFI could see more short squeeze to $14,000 as it broke below $9000 as sellers stay in full control of the near-term outlook while still erasing the gains that it incurred as a result from the parabolic rally so let’s read more in today’s altcoin news.
This weakness came about due to many factors like the fragmented community, low yields on the ecosystems’ products, and the focus on new tokens that he is working on. The weakness came due to the bullish governance proposal that redirects the ecosystem’s income away from staking rewards and to the market buying YFI tokens. This could provide it with even more buy-side pressure but remains unclear whether this will be great for stopping the descent that the coin is now facing.
The yearn finance trader says YFI short-squeeze could still occur which made lead the price to a rally towards $14,000 in the near-term. The potential squeeze could help the token form a mid-term bottom and start seeing some relief but it could face further capitulation before seeing more gains in the near-term. at the time of writing, Yearn.fiannce was trading down about 8% at a current price of $8700. This is the lowest price recorded which was trading since it first peaked at highs of $450,000 set at the peak of the recent bull run.
The peak coincided closely with a few major listings on exchanges like Gemini and coinbase. The liquidity that these listings provided gave the holders liquidity to exit with the price sliding lower even since. For the token to start forming a long-term bottom, it has to see a short squeeze that allows it to reclaim its position above $10,000. One analyst believes that this is a real possibility noting that the massive quantity of short positions indicates that a move above $14,000 could come about:
“YFI – No trigger no long. Not contemplating shorting this unless BTC breaks down. Might see a short squeeze to 13-14k still on the cards. Blue arrow trigger.”
It remains unclear if Yearn.Finance has seen a true capitulation as there could one more even bigger dive lower happening before it sees a short squeeze and posts a long-term bottom.
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