Yearn Finance has seen its biggest transaction in almost 3 months, with roughly $60 million being transferred in just a few hours. This is nearly 3x larger than any other transaction seen in the past 3 months, showing that whale activity is rising.
The two transfers were sent to a proxy address and a known whale address early this morning. The first transfer amounted to 3,869.54 $YFI (approximately $29.8 million), with the second coming in at a similar amount.
While it is unclear as to why these two massive transfers were made, one thing is certain: big whales are back in the Yearn Finance game. In addition to this, the surge of activity suggests that we could be seeing an increase in other high-value transfers over the next few days.
This could be good news for Yearn Finance, as it means more money entering the network and, thus, a higher valuation of its native token, $YFI. It is yet to be seen whether these two transactions are part of a larger plan or just an isolated event, but regardless, this surge in activity will be followed closely by crypto investors to see where the market goes next.
Yearn Finance Price Analysis
Yearn Finance’s price has been largely stable over the past few hours, with the token trading between $7,382.91 and $7,895.23. However, with these two massive transfers taking place in quick succession this morning, there is potential for a shift in its valuation.
Yearn Finance has been trading in a horizontal channel since late February, and this surge of activity could be the catalyst that propels it outside of its current range. Yearn Finance has been making higher highs and higher lows over the past few weeks, and this could be a sign that it is on the cusp of a breakout move.
Looking at the technical analysis on the daily chart, EARN/USD is trading inside a rangebound market with a strong resistance level of $7,900 and support at $7,800.Yearn Finance is trading at $7,895.23, down by 2.31% in the last 24 hours. A break out upwards could see the price target $1.15, while a break out below could target $7,900.
The technical indicators signal a bearish outlook, with the RSI at 47 and the MACD lines below 0. However, given the recent surge of activity, Yearn Finance could be due for a surprise breakout upwards. Bullish candlesticks are forming on the daily chart, indicating buying pressure.
Most of the technical indicators point to a bearish market sentiment, but given the recent whale activity, this could be a sign of an imminent reversal. Profit-taking investors could be short-selling in anticipation of a sudden drop, but the whales could buy back in to push up the price.
Only time will tell how Yearn Finance’s two transfers will affect its price, but one thing is certain: whale activity is back in the game. With big whales shifting large amounts of funds around, Yearn Finance could be due for a price reversal.
