YFI - -40.27% 1-Year Drop Amid 1.42% Monthly Gains

On NOV 7 2025, YFI dropped by 0.13% within 24 hours to reach $4786, YFI rose by 1.66% within 7 days, rose by 1.42% within 1 month, and dropped by 40.27% within 1 year.

Over the past 24 hours, YFI fell slightly to $4,786, marking a 0.13% decline. However, this short-term dip occurred against the backdrop of broader recovery in the one-month and one-week timeframes. In the last seven days, YFI rose by 1.66%, while the monthly increase was 1.42%, suggesting that the market continues to view the asset favorably despite the sharp one-year drawdown.

The stark 40.27% drop in the past year contrasts sharply with the recent upward trend, highlighting a significant volatility in market sentiment. This decline reflects a broader bearish phase that has unfolded over the year, likely influenced by a combination of macroeconomic pressures and sector-specific challenges. Yet, the ability of YFI to rebound in the shorter term suggests resilience and potential underlying demand.

The performance over the past 30 days, particularly the 1.42% gain, indicates that short-term traders or investors may be buying on dips, betting on the continuation of the asset's upward trajectory. The 1.66% gain in the last seven days further supports the idea that YFI is experiencing a period of relative strength in the immediate term.

Backtest Hypothesis

To evaluate the historical behavior of YFI following a significant one-year drop of 40.27%, a backtest could be conducted using the third interpretation outlined in the strategy description: a trading strategy based on drawdown signals. Specifically, the hypothesis would involve opening a long position in YFI whenever it falls by 40.27% or more from its one-year high. The strategy would then track the performance of the position over a defined holding period, such as 60 days or until a 10% rebound is achieved. The goal would be to determine whether such drawdowns historically serve as meaningful buying opportunities or conversely, as signals of further downside.

To refine the backtest further, additional parameters like stop-loss and take-profit rules could be applied. For instance, a 15% stop-loss could protect against additional short-term volatility, while a 10% take-profit target would lock in gains. By running this strategy on historical data, the performance could be compared to a benchmark or alternative strategies to assess its viability and robustness across different market cycles.