YFI Drops 40.43% Over the Past Year as Market Volatility Persists
As of October 24, 2025,
The nearly 41% drop over the past year points to a market climate where investors have favored traditional safe havens and yield-focused alternatives. Capital has increasingly flowed into assets seen as more stable or capable of delivering steady returns during uncertain economic times. In contrast, YFI has struggled to offer a compelling investment case, leading to its continued weak performance. This pattern is especially clear in the 1-month and 7-day data, which reveal ongoing declines in both investor sentiment and price strength.
Price trends throughout the year indicate that YFI has lost its ability to sustain upward momentum, as shown by significant declines across all major timeframes. While daily price changes have remained relatively calm, the persistent long-term drop suggests deeper structural issues rather than temporary market shifts. So far, analysts have not predicted a significant rebound, highlighting the importance of reevaluating YFI’s risk profile in current investment portfolios.
Technical analysis of YFI shows a steady bearish trend across several indicators. The asset continues to move within a clear downward channel, with important support levels repeatedly breaking down. Major moving averages remain aligned in a bearish pattern, supporting the outlook for further declines. Momentum indicators such as the RSI and MACD also point to ongoing weakness, implying that the downward trend is likely to continue unless a strong positive catalyst appears. This technical setup matches the overall price movement, suggesting that caution is warranted for YFI in the near future.
Backtest Hypothesis
To assess how a defensive trading approach might have performed during YFI’s recent slide, a backtest was conducted using a hypothetical event-driven strategy. This method sets a fixed entry when YFI drops 10% from a chosen high, whether from a recent peak or a set reference point. A trailing stop-loss is then used to secure profits or limit losses as the price changes. Exits are triggered either by reaching a profit target or hitting the stop-loss level.
The backtest covers trades from January 1, 2022, to October 24, 2025, utilizing YFI’s historical price data. The strategy’s effectiveness is measured by total returns, win/loss ratio, average profit or loss per trade, and drawdowns. The goal is to determine if a disciplined entry and exit plan could help reduce losses during YFI’s prolonged decline.
