Yearn.finance fell to four digits-but are whales accumulating?

The price of YFI, the native token behind the decentralized finance giant Yearn.

On October 30, the price of YFI dropped to as low as $9,631 on Binance.

In the medium term, there are positive factors that could buoy the sentiment around YFI. They are the potential reaccumulation of whales, new product launches, and post-capitulation recovery.

"For everyone that's mad at SBF for shorting YFI. He is also now the largest holder of YFI at a total of nearly 1800 YFI.".

On October 11, SBF confirmed on social media that he placed a net 200 YFI short.

A reported 1,800 YFI position is equivalent to $19.8 million, which far exceeds the initial short position.

"Can confirm that buying back YFI is how v2 is currently being structured. Treasury automation needs much more work though."

Due to the limited supply of YFI, a buyback feature as a part of the v2 vaults could strengthen the value proposition of Yearn.

Since its peak on September 12, the price of YFI plunged by more than 77%. The price trend demonstrates a capitulation-like phase, where it crashed strongly in a short period.

Santiment, an on-chain market analysis firm, said YFI is showing signs of bullish divergence following the correction.