Blur Token Unlock Sparks Volatility as BLUR Price Drops 10%

Blur, the decentralized NFT marketplace, saw significant market activity following its monthly token unlock. This month, 34.41 million BLUR tokens, worth about $11.06 million, were unlocked and transferred to Coinbase Prime.

Since the unlocking cycle began on June 15, 2023, roughly 31.6% of the total BLUR supply (949 million tokens) has entered Coinbase Prime. This equals $323.1 million at the current transfer value. This continuous token unlocking influences BLURs market behavior, which shows a downward trend.

Price Movement and Market Pressure

The current price of BLUR stands at $0.3172, marking a 10.18% decline over the past 24 hours. This drop reflects the broader market sentiment, with the token facing consistent downward pressure. The market cap also fell to $659.33 million, a 10.09% decrease.

However, trading volume rose by 14.32% to $130.86 million. This increase, combined with the price decline, suggests higher trading activity and intensifying selling pressure.

Key Support and Resistance Levels

Blur‘s recent price movement has been marked by a struggle to maintain key support levels. The token’s recent high resistance level was $0.3532, which the price failed to break through. This resistance zone forced the price downward, reinforcing the bearish sentiment.

Read also: BLUR Token Holders Cry Foul as Price Tanks Despite Ecosystem Growth

On the other hand, the current support level is $0.32. The price tested this level multiple times, suggesting it could hold. If this level stays intact, a short-term rebound is possible.

However, if the price falls below $0.32, the next level to watch is $0.31. This could signal a deeper decline. For a bullish reversal, BLUR needs to reclaim and hold above $0.35.

Momentum Indicators and Outlook

Blurs short-term momentum is bearish, with a 1-day RSI of 43.09. This suggests the asset is approaching oversold conditions but is not at extreme levels yet. Also, the 1-day MACD is below the signal line, confirming the downward momentum.