- BLUR’s price declined by almost 10% on 7th December.
- This was due to increased sell-offs by the token whales and institutional investors.
BLUR’s price experienced a significant drop during the trading session on the 7th of December, plummeting by nearly 10% in a single day.
According to on-chain sleuth Lookonchain, the sharp decline in the altcoin’s value was due to a surge in selling activity by BLUR whales and its institutional investors. On that day, they distributed a cumulative of 16.85 million tokens worth around $8 million.
1/ The price of $BLUR dropped ~8% today and we noticed a lot of whales/institutions selling $BLUR, a total of 16.85M $BLUR($8.43M). pic.twitter.com/7MKqrRMq0y
— Lookonchain (@lookonchain) December 7, 2023
Lookonchain found that private equity firm Mandala Capital deposited 2.76 million BLUR tokens worth $1.4 million to crypto exchange OKX. From this transaction, the firm incurred a loss of approximately $100,000.
Further, five wallets that received BLUR tokens from Coinbase Custody deposited them into various exchanges via Wintermute. This series of transactions involved 8.24 million BLUR tokens worth over $4.12 million.
Another whale that had withdrawn some of its BLUR holdings from Binance between 15th and 29th November sent them back to the exchange within the last two days to incur a $65,000 loss.
There is low interest in holding BLUR
While BLUR’s value has since recorded a minor upward correction, the price/volume divergence seen in the past 24 hours hinted at the presence of lingering bearish sentiments in the token’s spot market.
At press time, the altcoin exchanged hands at $0.5024, seeing a 2% price growth in the last 24 hours, according to CoinMarketCap. However, within the same period, the token’s trading volume has dipped by almost 15%.
The movement of BLUR’s price and trading volume in opposite directions during the same time frame presents a bearish divergence.
This means that a small group of investors may be buying the altcoin to push its price up, especially after the significant sell-offs by the whales. However, there is little broader market interest.
An assessment of BLUR’s Money Flow Index (MFI) on a daily chart confirmed the low interest in the token. At press time, this indicator’s value was 28.63 and positioned in a downtrend.
At this value, the token’s MFI signaled that BLUR distribution significantly outpaced accumulation among daily traders.
How much are 1,10,100 BLURs worth today?
Showing that the 2% price rally in the last 24 hours was not backed by any real demand for the token, BLUR’s Aroon Up Line (orange) was 0% as of this writing.
This indicator is used to identify trend strength and potential trend reversal points in a crypto asset’s price movement. When an asset’s Aroon Up Line is close to zero, the uptrend is weak. It also suggests that the most recent high was reached a long time ago.
Source: TradingView