• Blur price has dropped nearly 27% from its local high of $0.685. 
  • Investors can expect a further drop of 46% based on on-chain metrics.
  • A network-wide decline in activity combined with high unrealized profits and whales offloading tokens could drive BLUR lower.

Blur (BLUR) price rallied 352% in just 43 days between October 12 and November 24, which propelled it to create a local top at $0.685. While this move is impressive, BLUR has already shed 26% and currently trades at $0.502. A minor pullback is likely before the altcoin drops even lower. 

Read more: Week Ahead: Bitcoin’s bull trend in question as spot ETF momentum fades

Blur price could slide lower as headwinds multiply 

Blur (BLUR) price drop was not a question of if but when. A closer look at Santiment’s on-chain metrics showed that this decline could be anticipated using on-chain metrics. The Daily Active Addresses (DAA) and Network Growth (NG) started to decline after November 22 and formed a lower high on November 24 and 25, when BLUR set up a local top. Shortly after, the volume also declined, adding credence to this bearish thesis. 

Currently, the DAA, NG and Volume sit at levels higher than the pre-rally levels.

Also read: Blur price could rally 65% more as BLUR holders panic sold $9 million tokens

BLUR DAA, NG, Volume

BLUR DAA, NG, Volume

The next key metric to check is the Network Realized Profit/Loss (NPL). This on-chain metric is used to track the average profit/loss as it assumes that the token was sold when it changes addresses. If the change in hands occurs after a price spike, the NPL shows a positive spike as well, and it means that investors are realizing profits and is interpreted a sell signal.

Likewise, a negative spike shows capitulation and can be considered as a buy signal.

The capitulation event on November 21 saw nearly 8.45 million worth of BLUR being sold at a loss, which was followed by a 103% rally in Blur price from $0.337 to $0.685. 

On November 27, however, roughly $7.60 million worth of profits were realized, which suggests that there more downside awaits BLUR holders.

BLUR NPL

BLUR NPL

Lastly, the Supply Distribution metric shows that whales holding between 10,000 to 100,000, 100,000 to 1,000,000 and 1,000,000 to 10,000,000 BLUR started to offload their holdings after November 20. This development indicates that whales have had a significant influence on the recent drop in Blur price. 

Going forward, it is good to track these investors to determine were the token will head next. 

BLUR Supply Distribution 

BLUR Supply Distribution 

Read more: Blast Layer 2 locks users’ $568 million for three months, drawing criticism from Paradigm

Blur technicals point to another 42% correction

Blur price has shed nearly 30% from its local top of $0.685 and currently sits around the $0.480 support level. If investors continue to realize profits and BTC slides lower, a breakdown of this structure is likely. However, a minor pullback to $0.555 could be plausible before another leg to the downside.

The 50% Fibonacci retracement level of $0.420 will be the next target for bears. Beyond this level, the 62% retracement level at $0.355 could be tagged in a dire scenario.

BLUR/USDT 1-day chart

BLUR/USDT 1-day chart

On the other hand, if Blur price flips the $0.700 hurdle into a support floor, it would invalidate the bearish thesis by producing a higher high. In such a case, BLUR could climb higher to tag the next key psychological level at $1.000.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP