- Blur’s price downtrend was accompanied by a rise in trading volume.
- EMA Ribbon and CMF were bearish, while RSI and MFI suggested otherwise.
Blur [BLUR] investors are having a hard time as the token’s price witnessed a major price correction of nearly 30%. Amidst this chaos, BLUR is all set to unlock 40% of its royal supply in the coming days, which can further add to the misery.
Read Blur’s [BLUR] Price Prediction 2023-24
BLUR’s circulation to increase soon
Token Unlock tweeted on 13 June that Blur’s next token unlock is scheduled to happen on 15 June 2023. Around 193 million BLUR tokens will be unlocked on the day, which will add to the current 493 million circulating supply. The number is massive, as it would increase the token supply by nearly 40% in a single day.
The one and only cliff unlocks $BLUR, 40% of the total supply ?
$ 196 million will be unlocked in 2 days ??@blur_io
– Distribution ?
– Investor price ?
– On-chain analysis ?
– Price impact ?Free exclusive insights for 10 days
Read now??https://t.co/VCD9Ndjq9M— Token Unlocks (@Token_Unlocks) June 13, 2023
The token will have a total supply of 3 billion out of which 496 million are currently circulating in the market. An increase in circulating supply is often followed by a price plummet. This happens because of the demand-supply theory. As circulating supply increases, demand for an asset decrease, causing a dip in its price.
Therefore, post token unlocks, BLUR’s price might be subject to a price correction. The situation can get worse as the token’s current price action is bearish. At the time of writing, BLUR was already down by more than 29% over the last seven days and was trading at $0.3184 with a market capitalization of over $157 million.
A price drop seems inevitable
BLUR’s current downtrend was accompanied by an increase in trading volume, which is typically bearish. The token’s exchange inflow was also relatively high, suggesting that investors were selling their holdings.
Thanks to the price drop, negative sentiment around the token was dominant in the market, as evident from its weighted sentiment. Additionally, its 1-week price volatility was also high, increasing the chances of a continued downtrend after the token unlock.
Source: Santiment
Realistic or not, here’s BLUR’s market cap in BTC terms
Investors should be cautious
A look at BLUR’s daily chart gave more reasons for concern. For example, the 20-day Exponential Moving Average (EMA) was resting below the 55-day EMA, reflecting a bearish upper hand in the market. The token’s Chaikin Money Flow (CMF) also registered a slight uptick, which looked bearish.
Nonetheless, BLUR’s Relative Strength Index (RSI) was in the oversold zone, which can increase buying pressure. Its Money Flow Index (MFI) also rebounded after touching the 25 mark, which was a bullish signal.
Source: TradingView
