Decentralized finance tokens trade well below their August peaks, with YFI and LEND down 46% and 50% respectively. Every token in the top 10 fell that day as selling pressure mounted across the market
Decentralized finance tokens trade well below their August peaks, with YFI and LEND down 46% and 50% respectively. Every token in the top 10 fell that day as selling pressure mounted across the market. The pullback reduced total value locked in DeFi from $13.2 billion to $9.38 billion as of September 22.
Yield farming had drawn traders over recent months, spurring rallies to new all-time highs. The sector continued attracting users, yet prices reversed sharply this week. Many tokens now trade nearly 50% below their recent peaks, and losses likely continue.
Yearn.finance's YFI token exemplifies the volatility. On September 12, it peaked at $43,000, delivering gains that numbered in the thousands of percentage points. Within seven days, sellers drove the price down to $20,000, erasing 46% of that peak. The Ethereum-based token recovered 3.4% in the past 24 hours and trades around $25,000, though the weekly chart remains underwater.
The 4-hour chart hints at a potential bounce. A falling wedge pattern suggests room for a breakout. The MACD shows hidden bullish divergence, and the RSI is climbing away from oversold levels. If buyers maintain control, the token could target $30,000 in the near term.
LEND, the Aave token, fared worse. The price fell 10% on the day and 29.8% over the past week. After rallying to $0.92 in August, it ran into resistance near $1.00 and has since dropped to $0.46, shedding half its value from the all-time high.
Technical indicators favor sellers. The daily chart shows the MACD declining, and the 20 and 50 moving averages are acting as overhead resistance for any recovery attempt. A decisive move above those levels could launch LEND toward $0.60. Support sits at the 100 moving average and the 23.6% Fibonacci retracement, which equals $0.44 on the decline from the $0.90 high.
