Yearn.finance’s YFI governance token has seen its first relief rally in ages, with bulls moving to form a bottom following a multi-week period of seeing relentless losses.
The cryptocurrency reeled as low as $7,500 earlier today, at which point bulls stepped up and sent it surging up to highs of $10,000.
It did face an influx of selling pressure at this price, with buyers unable to flip this historically significant level.
If broken above and confirmed as support, $10,000 could eventually act as a strong base for growth that could send it flying significantly higher.
Despite today’s strength, the cryptocurrency’s price action over the past month has been nothing short of disastrous, and one economist is pinpointing this weakness on the Yearn.finance ecosystem’s founder.
He believes that the lack of transparency when it comes to the team and what they are working on makes it hard for investors to take positions in the cryptocurrency with any certainty.
Yearn.finance’s (YFI) Struggles to Maintain Momentum as Bulls Try to Establish a Bottom
At the time of writing, Yearn.finance’s YFI token is trading up over 2% at its current price of $8,700.
This marks a notable surge from its recent lows of $7,500 that were set earlier this morning, but it did face a strong rejection at $10,000 that seems to point to some underlying weakness amongst the cryptocurrency’s bulls.
The cryptocurrency is still down from its recent highs of $45,000, and it will require a fresh DeFi bull run, and a surge in yVault yields for these highs to come about again.
Economist: YFI’s Growth Hampered by Founder’s Risk
One economist explained that Andre Cronje – the founder of Yearn.finance – is a major variable for YFI that may be hampering its growth. He contends that Cronje’s lack of attention on YFI and the anonymous development team “working in the shadows” are hampering its growth.
“Cronje is a major variable. He wants Yearn to be decentralized and walk on its own, driven by the team. Nobody knows the team, they are in the shadows. What Cronje did with YFI is similar to leaving a toddler to walk alone in a city. Dropping yields is the second variable,” he said.
Unless the Yearn.finance token breaks above $10,000 in the near-term, there’s a strong possibility it will continue seeing immense weakness.
Featured image from Unsplash. YFIUSD price data from TradingView.