Blur (BLUR) could increase to 30% by March 2023 due to a combination of technical and fundamental factors.
Blurring airdrops
Blur is a non-fungible token (NFT) aggregator that indexes listings of digital art on various underlying marketplaces such as LooksRare and OpenSea. At the same time, the aggregator allows users to trade on all NFT trading platforms through a single interface.
Since its launch in October 2022, Blur has become the leading NFT aggregator, accounting for 40-60% of daily NFT trading volume, according to data tracked by Messari.
During the same period, the Blur team was giving away free BLUR tokens to users who traded Ethereum-based NFTs in the past six months. On February 15, Blur officially launched its own eponymous token, allowing airdrop recipients to exchange it for fiat money and other crypto assets.
In accordance with Dune Analytics, Blue has given away 360 million tokens to its users. Interestingly, users demanded around 339 million BLUR tokens in the first six days after launch, compared to the 60 day period.
As a rule, traders dump tokens in advance in order to make an instant profit. However, the price of BLUR remains about 25% higher than its debut market price of $0.88, which suggests that most traders have decided to hold on to it longer.
One of the reasons could be Blue Team’s intention to hold another airdrop in the coming months. The news coincides with the Total Value Locked (TVL) Blur metric hitting an all-time high of 76,490 ETH, according to Defi Llama.
“Blur giveaway reminds me of Uniswap giveaway” marked independent market analyst Nekoz, adding:
“Early sellers were selling for the PS5. Sellers with diamonds sold it for 5 figures. Imo, if you don’t need funds, just relax. This will be the number 1 NFT platform.”
Price Blurring Doji Reversal
The BLUR technical price information also hints that a bullish scenario is more likely.
On the 4-hour chart, BLUR has drawn a Doji pattern at the end of a short-term correction phase. This is confirmed by a four-hour candle with almost identical open and close levels, as well as extreme bearish and bullish wicks.
Doji shows traders’ indecision about the next market shift. But when combined with Blur’s other technical indicators, namely its short-term support near $1 and the neutral Relative Strength Index (RSI), it looks like the doji could lead to a bullish reversal in the coming weeks.
In other words, the price of BLUR could bounce off its $1 support level to see an interim advance towards $1.21 that has served as resistance and support in recent sessions. What’s more, a long jump could push the price towards $1.39, or BLUR’s recent peak, by March 2023.
Bearish arguments
Despite strong fundamentals, the price of BLUR could undergo an extended correction below the $1 support level, according to a technical setup shared by Altcoin analyst Sherpa.
The Chartist maintains its near-term bullishness on BLUR but expects its price to drop to $0.94 first, saying it “should provide a solid bounce.”
He also claims that BLUR’s market bias will depend on how Bitcoin (BTC) performs in upcoming sessions.
This article does not contain investment advice or recommendations. Every investment and trading step involves risk, and readers should do their own research when making a decision.
Credit : cointelegraph.com
