- Daily trading volume on the Blur NFT marketplace has increased fivefold in the past month.
- Short traders are getting stuck as BLUR is trending up amid the recent general market correction.
The daily trading volume on Blur [BLUR] The NFT market increased more than fivefold in November. This was the largest volume spike, reaching and surpassing $35 million.
The increase corresponded with increased activity, indicating growing interest in NFT platforms that could potentially influence the price of the BLUR token.
It was striking that the volume peaks were not consistent; instead, they appeared in sharp bursts, indicating reactive trading behavior.
Source: Token terminal
If the trend of increased NFT activity continues, BLUR’s price could respond positively, following the volume spikes.
However, this may largely depend on the other circumstances and continued interest in trading on the Blur platform. This suggested that BLUR was becoming a major player in the NFT space, warranting close monitoring of future market reactions.
BLUR short traders are trapped
BLUR’s short selling activities over the past week caused an immediate price spike, trapping shorts due to the quick recovery. This highlighted the concentration of orders, which was a sign of busy short trading.
New shorts then entered the market but got stuck as the price quickly escalated and peaked around $0.44.
The captured shorts indicated volatility and the risky nature of betting against a strong BLUR uptrend.
Source: Hyblock Capital
This activity indicated where shorts were entering and coming from, suggesting a possible continuation if the short-catching trend continues, leading to potential short squeezes that could further push prices higher.
Forecast and spot inflow/outflow
BLUR responded to the continued resurgence of the NFT market by starting the month at $0.25 and quickly rising to $0.45 by mid-December. This may have attracted more traders.
This showed a bullish trend consistently above both the 50-day and 200-day SMA, indicating strong upside momentum.
Furthermore, the fact that the MACD was below the price confirmed the bullish sentiment as it remained positive throughout this period. The sharp rise in the MACD reinforced the bullish trend.
Source: trading view
A sharp fund outflow of over $6 million coincided with a spike in the BLUR price, indicating strong buying interest or withdrawal from exchanges.
Source: Coinglass
The net flow remained relatively stable, followed by rapid outflows, indicating high annual volatility.
The patterns suggested that the inflows and outflows were crucial. If the trend continues, BLUR could experience further price volatility, driven by large transfers in and out of exchanges.