Over the last week, a recent relief rally managed to catapult 35.82% of the gains for the decentralized finance [DeFi] project, the YFI token of Yearn Finance. But the much-needed bullish sentiment might be cut short. According to the latest developments, YFI’s fourth-largest transaction since late August.
This was revealed by the crypto analytic platform, Santiment which noted that 2,546.23 YFI tokens were transferred as a centralized exchange deposit, worth a total of $13.8 million from a whale address to new exchange address. As depicted in Santiment’s chart attached above, the YFI holdings were reduced by 50% following this transfer.
Coinciding With Yearn Finance [YFI] Token’s Price Action
It is important to note that the transfer came right after Yearn Finance [YFI] token attempted to regain some of the lost value along with a considerable uptick by several other top DeFi tokens on the same day. YFI turned down from a crucial area of resistance at $15,083 as sell-off intensified following the surge as buyers have been unable to flip this significant level.
At the time of writing, YFI was being traded at $14,833.
Many in the community have urged that Eminence’s debacle and Yearn Finance’s Creator Andre Cronje involvement in it has been damaging for the YFI. One economist also opined that Cronje and his team working in the shadows has
“YFI’s performance has been disastrous. It has “capitulated” so many times in the last few weeks. It is YFI specific, going beyond alts. It is the worst performing coin of the top 100 in the last week, by a 10% margin. It has done 2x worse than the 10th worst performing asset.”
He further added,
“Cronje is a major variable. He wants Yearn to be decentralized and walk on its own, driven by the team. Nobody knows the team, they are in the shadows. What Cronje did with $YFI is similar to leaving a toddler to walk alone in a city. Dropping yields is the second variable.”
Much-needed Push
On a brighter note, a bullish momentum may start snowballing if YFI manages to climb above the $15K-level. On the other hand, a failure to steer clear of this barrier could potentially materialize an extended downside correction with the initial support levels of $14,000-$13,600, and $12,700 respectively.