The daily trading volume on the Blur NFT market has increased 5 times in the past month.
Short-term traders are struggling as BLUR shows an upward trend amid the overall market correction.
The daily trading volume on the Blur [BLUR] NFT market has increased more than 5 times in November. This is the strongest volume increase, reaching and exceeding 35 million USD.
This growth, along with increased activity, indicates a growing interest in NFT platforms, which could affect the price of the BLUR Token.
Notably, sudden spikes in unstable volume do not occur; instead, they appear in strong bursts, indicating quick-reacting trading behavior.
Source: Token Terminal
If the NFT activity trend continues to rise, the price of BLUR may react positively, following the peaks of volume.
However, this may greatly depend on other conditions and sustained interest in trading on the Blur platform. This indicates that BLUR is becoming a new star in the NFT space, worth closely monitoring for future market reactions.
Short-term traders of BLUR are trapped
BLUR's short-selling activity over the past week caused an immediate price surge, trapping short-term traders due to the rapid recovery. This highlights the concentration of orders, signaling that short trades are being cornered.
Shortly after, new short-term traders entered the market, only to find themselves trapped as the price surged rapidly, peaking around 0.44 USD.
The entrapment of these short-term traders indicates the volatility and risk of betting against the strong upward trend of BLUR.
Source: Hyblock Capital
This activity indicates where short-term traders are entering and their exit points, suggesting the potential for continuation if this trend traps these short-term traders, leading to short squeezes that could continue to push prices higher.
Predictions and capital inflow/outflow
BLUR has reacted to the ongoing recovery in the NFT market, starting the month at 0.25 USD, climbing to nearly 0.45 USD by mid-December. This is likely to attract more traders.
This indicates a strong upward trend, consistently maintaining above the 50-day and 200-day SMA, suggesting strong bullish momentum.
Moreover, the MACD is below the price, confirming bullish sentiment as it continues to remain in positive territory throughout this period. The strong rise of the MACD reinforces the bullish trend.
Source: Trading View
A strong capital exit exceeding 6 million USD coincides with a price increase for BLUR, indicating strong buying interest or withdrawals from exchanges.
Source: Coinglass
The net capital flow remains relatively stable, followed by a quick capital exit, indicating high annual volatility.
These models show that the inflow and outflow of capital are very important. If the trend continues, BLUR could experience greater price volatility, influenced by large transfers in and out of exchanges.
