YFI has dropped 44.44% since the start of the year as the ongoing sell-off continues

On November 5, 2025, Yearn.Finance (YFI) slipped by 0.45% over the past 24 hours, settling at $4,459. This continues a recent downward trend, with the token declining 5.66% in the last week and matching that loss over the previous month. Since the start of the year, YFI has dropped 44.44%, underscoring a persistent bearish sentiment that shows little sign of reversing soon.

This wave of selling fits into a larger pattern of weakness across the cryptocurrency market, but the particular challenges facing

are tied to its on-chain metrics and shifting governance structure. Although there have been attempts to broaden the Yearn ecosystem and roll out new yield strategies, the token has yet to recover its previous value. The ongoing price decline has led to a negative technical outlook, with crucial support levels coming under strain and resistance points remaining out of reach unless there is a significant change in sentiment or utility.

Investors are monitoring whether upcoming governance changes or fresh strategic alliances might spark a turnaround. Yet, with no recent governance proposals and no uptick in DeFi activity associated with YFI, the market seems to be in a holding pattern, waiting for new developments.

Technically, YFI is trading beneath both its 50-day and 200-day moving averages, which further confirms the bearish trend. Technical indicators like the RSI and MACD point to oversold conditions, but a meaningful recovery appears unlikely unless there is a fundamental shift in the token’s outlook. The current chart setup suggests traders are bracing for additional declines, with stop-losses and short positions likely concentrated around the $4,200 mark.

Backtest Hypothesis

To assess how a trading strategy might perform in response to YFI’s decline, a backtesting framework can be established using historical price data and technical signals. This backtest would aim to pinpoint and act on price zones that have previously indicated reversals or trend continuations.

The approach would involve initiating a trade when a specific price trigger occurs, such as a 10% drop from a recent high. After confirming the drop, the strategy would enter a long trade at a set price, placing a stop-loss just below the latest swing low. The position would be closed either after achieving a 10% profit or if a trailing stop is hit, whichever happens first.

This method is intended to capture short-lived rebounds during a bear market by entering trades when the token appears oversold and exiting before the broader downtrend resumes. It takes advantage of both momentum and mean-reversion tendencies that YFI has historically displayed in similar DeFi downturns.