11% walking or not, this is the case for YFI keepers holding their horses

The past 24 hours has provided some solace to investors who have been in trouble for weeks. Unfortunately, yearn.finance holders may not want to get too excited just yet. While the recovery seen yesterday is certainly a good sign, rising volatility could be a concern going forward.

YFI exceeds $20k

Once priced higher than Bitcoin, YFI hit its all-time high of $82,958 in May. However, the journey since then has only been painful for YFI investors.

As YFI started to tumble, it fell to $19.5k in December before quickly recovering at 87.69% in 4 days. Unfortunately, the months of January and February nullified this recovery as the altcoin once again dropped below $20,000 while barely holding the $18.5k support.

Yearn.finance Price Promotion | Source: TradingView – Coin-Crypto

However, YFI holders were elated after yesterday’s gain of 11.09%. For many it is quite understandable why.

Before the crash started, over 92% of YFI investors were enjoying gains, far from the possibility of losses. That quickly changed and today, after nine months, only 11% of investors are making a profit. In fact, 87% of the 41.4k YFI holders are currently in a loss.

YFI investors in losses | Source: Intotheblock – Coin-Crypto

The consistent drop in price caused the average balance of each address on the network to drop from $84.9k to $16.7k. The continued increase in investors also contributed to this.

Despite being 54% dominated by whales, YFI has a significant percentage of genuine investors. HODLers (long-term holders) on the network make up a quarter of the total investors who together own nearly 6000 YFI.

YFI delivery distribution by time | Source: Intotheblock – Coin-Crypto

These investors play a big role in a sustainable recovery/rally, something that is very necessary for the currency.

Given rising volatility and rising correlation with Bitcoin, YFI is vulnerable to a price drop. However, looking at the price indicators, it seems that bullish momentum is building.

The Parabolic SAR suggesting an uptrend and the Relative Strength Index (RSI) returning to the bearish neutral zone supported the same story.

However, the market has been very unpredictable in recent days. For the same reason, new investors are suggested to do their due diligence properly rather than simply relying on price action to buy in YFI.

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