Amidst the volatile crypto markets, non-fungible token (NFT) exchanges like BLUR have recently become incredibly popular. With the BLUR native token often seen as running counter to the mainstream market sentiment, its token unlock this week could have both short- and long-term impacts on token prices.
BLUR Token Holders Benefit from Airdrop as Trading Volume Dominates NFT Market
It all started with the launch of BLUR in October 2022. The NFT aggregator indexes art listings from different marketplaces and now dominate the market with 40-60% trading volume.
BLUR token holders experienced a 4% drop in the past 24 hours, underperforming the overall market. BLUR team announced an airdrop of free BLUR tokens to users who traded Ethereum-based NFTs in the past six months.
Users claimed approximately 339 million BLUR tokens in the first six days of the airdrops, surpassing expectations. Although airdropped tokens are often dumped early for an instant profit, BLUR’s price remained 25% higher than its market debut of 88c, suggesting that traders are heeding the team’s intention to conduct another airdrop in the coming months.
It also appears that the Doji pattern on the four-hour chart, combined with a short-term support level of around $1.00 and a neutral relative strength index (RSI), could result in a bullish reversal in the coming weeks, with BLUR possibly bouncing up to $1.21 by March 2023.
Analyzing the Potential Impact of the BLUR Token Unlock
Now, the big question on everyone’s minds is what the impact of the token unlocks will be. Around 196 million tokens, accounting for nearly 40% of the total circulating supply, will unlock this week. New supply entering the market could lead to stable demand and downward pressure on prices, as per economic principles.
However, it appears that the BLUR team has taken measures to rectify this. With 83% of all BLUR tokens currently locked, it may not yet have a significant effect on the price. Its top five pools on Uniswap V3 hold approximately $2.39 million in liquidity, ensuring enough capacity for the new tokens.
Sudden Market Shifts: A $473,000 Sell Order Can Drop BLUR’s Price by 2%
Of course, the turbulent crypto market is always subject to sudden shifts, and BLUR is no exception. A $473,000 sell order can drop BLUR’s price by 2%, while a $394,000 buy order can increase it by 2%.
Despite a high TVL of 76,490 ETH and BLUR incentives, the potential upside for BLUR appears promising. Traders should be cautious and consider the risks associated with the token unlock and its potential impact on BLUR’s price.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
