YFI -5.18% in 24 Hours Amid Broader Decline in Long-Term Metrics

On NOV 4 2025, YFI dropped by 5.18% within 24 hours to reach $4331, YFI dropped by 6.64% within 7 days, dropped by 8.48% within 1 month, and dropped by 46.1% within 1 year. These figures reflect a broad deterioration in the asset’s value across multiple timeframes, suggesting a lack of strong near-term buyers and potentially signaling a bearish technical setup. The drop within a single day alone represents the largest daily decline since mid-2024, raising questions about market sentiment and liquidity conditions.

The 7-day decline of 6.64% indicates a sustained downward trend, with momentum potentially accelerating from the previous week. The 1-month decline of 8.48% further supports the narrative that YFI is under pressure from both short- and medium-term investors, with limited signs of a reversal. Meanwhile, the 46.1% drop over the past year highlights a structural bear market, where YFI has failed to maintain a stable value amid shifting macroeconomic conditions and broader market dynamics.

YFI’s technical indicators suggest a continuation pattern could be in place, with potential for further downside unless a strong reversal candle or breakout above key resistance levels occurs. Traders are likely monitoring moving averages and volume profiles to assess whether the current decline is a short-term correction or part of a larger bearish wave. The absence of significant buying interest at current levels may extend the period of consolidation, with the next key support level expected to be tested in the coming weeks.

The market has not seen any recent news or developments that could justify a rapid shift in sentiment. As a result, the price action remains the primary driver of analysis. With no major events on the horizon, YFI’s performance will likely remain dependent on underlying market conditions and broader macroeconomic data.

Backtest Hypothesis

A backtest hypothesis can be constructed using the technical setup currently observed in YFI’s price action. Given the recent 5.18% 24-hour drop, a hypothetical trading strategy could be defined as follows: enter a short position when YFI closes down 10% from the previous close, using the adjusted close price. The strategy would hold the position for up to 10 trading days, with a stop-loss placed at a 5% gain from the entry point. No take-profit rules would be applied, allowing the trade to run as long as the price remains in a downward trend.

This setup would be tested using historical data from 2022-01-01 to 2025-11-04. The goal is to determine whether such an event-based strategy—triggered by significant price declines—would have been profitable over the tested period. The results would include an analysis of win rate, average return, and maximum drawdown, offering insights into the efficacy of using event-based shorting in volatile markets.