Price Drop of Almost 10% on December 7
On December 7, 2023, BLUR’s price experienced a significant decline, dropping by nearly 10% in a single trading session. This sharp drop was attributed to a surge in selling activity by BLUR whales and institutional investors, according to on-chain sleuth Lookonchain.
On that day, these large holders distributed a cumulative of 16.85 million BLUR tokens, worth approximately $8 million.
Notable Transactions
- Private equity firm Mandala Capital deposited 2.76 million BLUR tokens ($1.4 million) to crypto exchange OKX, incurring a loss of around $100,000.
- Five wallets that received BLUR tokens from Coinbase Custody deposited them into various exchanges via Wintermute, involving 8.24 million BLUR tokens ($4.12 million).
- A large holder sent some BLUR holdings back to Binance, incurring a loss of $65,000.
Lingering Bearish Sentiment in BLUR Market
Despite a minor upward correction since then, BLUR’s price/volume divergence over the past 24 hours has indicated the presence of lingering bearish sentiments in the token’s spot market. At the time of writing, BLUR is trading at $0.5024, showing a modest 2% price growth in the past 24 hours, but its trading volume has declined by almost 15% during the same period.
This divergence between price movement and trading volume suggests a lack of broader market interest. An assessment of BLUR’s Money Flow Index (MFI) on a daily chart confirms this low interest. As of now, the MFI value is 28.63 and is trending down, indicating that distribution significantly outpaces accumulation among daily traders.
Technical Indicators Point to Weak Uptrend
Further, BLUR’s Aroon Up Line, an indicator used to identify trend strength, was 0% at the time of writing. This low value suggests a weak uptrend and indicates that the most recent high was reached a long time ago.
Conclusion
The recent sell-off of BLUR by whales and institutional investors has caused a significant price decline. Despite a small price rally in the past 24 hours, the market indicators point to lingering bearish sentiment and a lack of broader market interest.
Disclaimer: This article is for informational purposes only. It is not intended as financial advice and should not be relied upon as such. Consult with a qualified financial advisor before making any investment decisions.
Source: Lookonchain
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