Yearn.finance’s YFI token is surprisingly resilient today despite the turbulence in the aggregated crypto market. While Bitcoin is dropping lower, most of the DeFi sector is on the rise today.
The break of this the recent multi-month downward trend in the industry came about after a series of tremendously short periods seen by the blue chip DeFi assets such as YFI, SNX and others.
Just a few days ago, YFI rebounded from a low of $ 7,500 to $ 18,000 in just a few hours, marking one of the biggest spikes an asset of its size has seen in such a short period of time.
After reaching these highs, it began to face some intense selling pressure that slowed its growth and saw a sharp decline to lows of $ 12,000. From this point it recovered and has been trading sideways ever since.
a bearA favorable event that may indicate a drawback is imminent for the token is the transfer of 2,546.23 YFI tokens to a centralized exchange, marking the 4th largest transaction of all time.
These tokens could be offloaded soon, which puts enormous pressure on the sell side of the cryptocurrency.
Yearn.finance’s YFI is stabilizing despite Bitcoin’s downturn
In the past few hours, Bitcoin’s weakness has not had much of an impact on the DeFi sector’s price action.
Yearn.finance’s token is trading down about 2% at the current price of $ 14,780. This is around the price it has been trading at in recent days.
It is still down from its recent highs of $ 18,000 set at the peak of the short squeeze-induced rally, but it is still up nearly 100% from its weekly lows.
If BTC continues to decline, it could create headwinds that hinder higher risk cryptocurrencies such as YFI.
YFI has just seen its fourth largest transaction ever – and it’s bad news for Bulls
According to one analysis platformYearn.finance’s YFI token has just seen its 4th largest transaction ever, where someone sent over 2,500 tokens to an exchange.
This could indicate that a massive influx of sell-side pressure is imminent.
“We just tracked the fifth largest transaction of all time and the highest amount since the end of August, Yearn.finance. 2,546.23 YFI tokens were transferred as a centralized exchange deposit, worth a total of $ 13.8 million from a whale address to a new exchange address. “
Image Courtesy of Santiment. Source: YFIUSD on TradingView.
Just because these tokens are being moved to an exchange doesn’t mean they’ll be sold, but it could be a potential event that downward momentum.
Featured image from Unsplash. Charts from TradingView.