YFI Drops 5.18% Over 24 Hours as Long-Term Indicators Show Continued Downtrend

On November 4, 2025, YFI experienced a 5.18% decline over a 24-hour period, dropping to $4,331. Over the past week, it fell by 6.64%, lost 8.48% in the last month, and plummeted 46.1% over the previous year. These statistics point to a consistent weakening of the asset’s value across various timeframes, indicating a shortage of strong buyers in the near term and possibly hinting at a bearish technical outlook. The single-day drop marks the steepest daily loss since mid-2024, prompting concerns about overall market sentiment and liquidity.

The 6.64% decrease over seven days signals a persistent downward movement, with momentum possibly building from the prior week. The 8.48% monthly loss further emphasizes that YFI is facing selling pressure from both short- and medium-term holders, with little evidence of a turnaround. The 46.1% annual decline underscores a prolonged bear market, as YFI has struggled to retain value amid changing macroeconomic factors and broader market shifts.

Technical analysis of YFI suggests a continuation pattern may be forming, with further declines possible unless a strong reversal or a breakout above significant resistance levels occurs. Traders are likely watching moving averages and trading volumes to determine if the current drop is a brief correction or part of a more extended bearish phase. The lack of notable buying at current prices could prolong the consolidation period, with the next major support level likely to be challenged soon.

No recent news or developments have emerged that would explain a sudden change in sentiment. Consequently, price movement remains the main focus for analysis. With no significant events expected in the near future, YFI’s trajectory will likely be shaped by overall market trends and broader economic indicators.

Backtest Hypothesis

A backtesting hypothesis can be developed based on YFI’s current technical setup. Considering the recent 5.18% drop in a single day, a sample trading strategy might involve entering a short position if YFI closes down 10% from the previous session, using the adjusted closing price. The position would be maintained for up to 10 trading days, with a stop-loss triggered at a 5% gain from the entry price. There would be no take-profit limit, allowing the trade to continue as long as the downward trend persists.

This approach would be evaluated using historical data from January 1, 2022, to November 4, 2025. The objective is to assess whether this event-driven strategy—activated by sharp price drops—would have yielded profits during the test period. The analysis would cover win rate, average returns, and maximum drawdown, providing insight into the effectiveness of event-based short selling in volatile markets.