Bluezelle (BLZ) drew investors’ attention when it rallied 425% between August 4 and September 20, reaching a 2023 price peak of $0.21. On-chain analysis explores how recent whale movements could impact BZL prices in the days ahead.
Bluzelle’s price rallied toward the 2023 peak of $0.21 in September courtesy of a Binance trading pair. A number of bearish whale movements could send BLZ into a downward spiral.
Crypto Data Sleuths Spotted Whales Moving BLZ Worth Millions
Failing to attract significant improvement in the underlying network traction to support its recent price rally, Bluzzelle’s price has lost 40% since the September 20 local top.
After racking up losses for three consecutive weeks, dysphoric crypto whales are preparing to sell.
In a series of posts, crypto analytics platform LookOnchian reported how several crypto whale wallets began to shift their tokens into the Binance exchange on Wednesday.
Wallets holding at least 1% or up to $100,000 of a cryptocurrency’s circulating supply are considered whales. Due to their financial muscle, they wield significant influence within a blockchain ecosystem.
Notably, the 3 whale wallets in focus currently hold 134.5M BLZ (27% of the total supply) and are worth $16.2M at the current BLZ price of $0.12, according to Lookonchain.
Hence, if these wallets offload a significant portion of their holdings, it could spook other strategic retail investors into selling.
Bluzelle Exchange Inflows Have Hit a 14-Day Peak
A closer look at the on-chain data reveals that Bluzelle exchange net flows had hit a 14-month peak. This confirms the potential bearish significance of the recent whale transactions reported by Lookonchain.
Bluzelle inflows into crypto exchanges on October 10 exceeded outflows by a staggering 8.3 million. The IntoTheBlock chart below also shows that September 27 was the last time BLZ recorded such large exchange netflows.
Exchange Netflows provides a daily snapshot of the difference between total token outflows and new inflows into crypto exchange wallets. A positive netflow indicates that investors are moving more tokens into exchanges than those moved into long-term storage and self-custody.
Logically, BLZ exchange netflows hitting a 14-day peak implies that investors seek to exit their positions in the days ahead, putting downward pressure on BLZ Price.
The escalating tensions in the Middle East could further incentivize whales to swap their BLZ positions for less volatile larger-cap projects.
BLZ Price Prediction: Possible Downswing Toward $0.09
From an on-chain perspective, the bears will likely send BLZ price into a downswing toward $0.09 in the coming days.
The Global In/Out of Money Around Price (GIOM) data, which depicts the entry price distribution of current BLZ holders, also supports this prediction.
However, it shows that a major support cluster of holders bought BLZ around the $0.09 level. As shown below, 1,030 addresses had bought 90.7 million BLZ at the maximum price of $0.085. They could trigger a significant rebound if they HODL.
But if that supports cluster caves, BLZ could eventually drop below $0.08.
On the upside, the bulls could regain control if BLZ’s price can reclaim $0.20. But in that case, 1,330 million addresses had bought 159.9 million Bluzelle tokens at the average price of $0.15. If they book profits, they will likely trigger an instant bearish reversal.
But if the resistance cluster fails to hold steady, Bluzelle could edge closer to $0.20.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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