YFI drops 3.95% as the downward trend continues and investors remain wary

As of October 30, 2025,

experienced a 0.6% decrease over the past day, settling at $4,669. This represents a 1.95% drop over the past week and a 13.41% decline in the last month. Since reaching its 2025 high, the token has fallen 41.73% so far this year, highlighting ongoing bearish sentiment amid overall market instability and a lack of positive drivers for the asset.

The prolonged negative trend has sparked worries among investors, especially as both liquidity and market depth have diminished. Experts suggest that the continued absence of notable on-chain progress or ecosystem growth for YFI could extend the current bearish outlook. Outflows from institutional investors and a slowdown in on-chain transactions have further weighed on the token’s performance, with little indication of an imminent turnaround.

YFI’s price has clearly broken below important support areas, with the $4,700 mark recently serving as a psychological barrier. If the price fails to remain above this point, further declines toward the $4,400–$4,300 range may follow. Technical signals like the RSI and MACD continue to point downward, indicating that the bearish trend may persist unless a strong positive catalyst appears.

The market is currently consolidating, with short-term traders and automated systems responding cautiously due to the lack of clear direction. This has led to subdued trading activity and little conviction in short-term price movements. Despite this, long-term investors have not shown panic, as reflected in steady on-chain data such as net inflows and the number of active wallets. The lack of major negative events—such as regulatory actions or network outages—suggests that the ongoing decline is more a result of broader market trends than any specific problem with YFI itself.

Backtest Hypothesis

To evaluate the potential returns of a strategy based on YFI’s volatility, we suggest a backtest using price data from 2022 to 2025. The hypothesis relies on these criteria:

1. Event Definition: A trade is triggered on any day when YFI’s closing price drops by 10% or more compared to the previous day. This threshold is commonly used in algorithmic trading and sentiment analysis to identify significant volatility.

2. Holding Period / Exit Rule: The strategy tracks price changes over the 20 trading days following the trigger event. Instead of a set exit rule, the backtest measures average returns, win rates, and drawdowns to evaluate performance.

3. Asset Selection: The analysis focuses exclusively on YFI, using daily closing prices.

This method is designed to reveal whether YFI typically rebounds or continues to fall after sharp corrections. The findings could shed light on investor reactions, market resilience, and the effectiveness of volatility-driven strategies during bearish phases.