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Bluzelle (BLZ) Surges 125%, but Unusual Whale Activity Raises Concerns

3 mins
Updated by Ryan James
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In Brief

  • After a brief retracement at the weekend, Bluzelle (BLZ) rebounded on Monday, breaking out of the $0.12 resistance.
  • Age Consumed has spiked to a 2-month peak, raising suspicions of a whale-driven coordinated pump action.
  • On August 13, BLZ recorded double-digit large transactions for the first time since September 2022.
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Bluzelle (BLZ) has grabbed headlines with a 125% price rally over the past week. On-chain data reveals that the intense whale trading activity has spiked significantly, sparking suspicions of coordinated pump action. 

Bluzelle (BLU) is a decentralized storage network that offers a database for software developers and creators to store information. Over the past week, the native token BLZ has pumped more than 125% to hit a new 6-month peak of $0.12. 

Why is Bluzelle Pumping?

According to the underlying on-chain data, the spike in whales’ trading activity is the main driver behind the ongoing Bluzelle (BLZ) price rally. But without a significant product launch or community update to propel the rally, will investors HODL or continue to book profits? 

The BLZ Whales are Making Unusual Moves

On-chain data has revealed an unusual trading activity among the Bluzelle whales over the last few days. The IntoTheBlock chart below depicts that the BLZ network recorded 22 Large Transactions on August 13. This is four times more than what was recorded in the previous 30 trading days combined.  

Bluzelle (BLZ) Price Rally | Whale Transactions, Aug 2023
Bluzelle (BLZ) Price Rally | Whale Transactions, Aug 2023, Source: IntoTheBlock

Large Transaction Count tracks thhe trading activity of whale investors summing up the daily number of confirmed transactions that exceed $100,000. The outlier spike in Large Transactions observed above indicates an unusual trading pattern among BLZ whales. 

For context, the 22 Large Transaction recorded on August 13 is the only time it has hit double-digits in whale trades since Sept 2022.

Unless the whales sustain this level of daily trading activity for the foreseeable future, BLZ could soon experience a flash price drop. 

Long-Term Investors Have Started to Bail 

With the price rally racing into triple digits, nearly 81% of BLZ holders are now in profitable positions. In response, many Long-term investors have started to take profits. 

As shown below, the BLZ Age Consumed data has spiked to a 1-month peak of 4.24 billion on August 13. This is a considerable increase from the 341.77 million recorded on the previous day. 

Bluzelle (BLZ) Price Rally | Age Consumed, Aug 2023
Bluzelle (BLZ) Price Rally | Age Consumed, Aug 2023, Source: IntoTheBlock

Age Consumed evaluates long-term investors’ trading activity by tracking how many previously long-held coins are currently on the move. It is derived by multiplying the number of recently-traded coins by the number of days since they were last moved.

A 1,400% spike in Age Consumed within a period of 48 hours means that many Bluzelle long-term holders have started bailing. 

The correlation between the Whale Transactions and Age Consumed, both recording considerable spikes on August 13, sparks concerns about a coordinated pump action.

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BLZ Price Prediction: Potential Reversal Toward $0.05

Drawing inferences from the on-chain indicators analyzed above, BLZ’s price will likely retrace closer to $0.05 in the coming days. However, the bulls will offer initial support around the $0.09 range. 

The In/Out of Money Around Price (IOMAP) data, which shows the purchase price distribution of current holders, also lends credence to this bearish stance.

As seen in the chart below, 861 addresses had bought 231.2 million Bluzelle tokens at the average price of $0.09. They could attempt to buy more to cover their positions to avoid losses.

But, if the momentum turns bearish, the BLZ price rally could fizzle out and drop toward $0.05.

Bluzelle (BLU) Price Prediction | IOMAP data, Aug 2023
Bluzelle (BLU) Price Prediction | IOMAP data, Aug 2023. Source: IntoTheBlock

But in contrast, the team capitalizes on the bullish momentum to roll out a valuable product update, the bulls could push the rally toward $0.20. 

But even in that case, the 1,200 addresses that bought 58.4 million BLZ tokens at the average price of $0.15 could trigger a pullback.

However, if that resistance gives way, Bluzelle could successfully reclaim $0.20.

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Ibrahim Ajibade
Ibrahim Ajibade Ademolawa is an experienced On-chain research analyst who began his career in Commercial Banking. He has worked with several Web3 startups and financial institutions —analyzing technical concepts and spectacular events that link the DeFi and TradFi worlds. He holds a Bachelors’ Degree in Economics and is currently pursuing an MSc. in Blockchain & Distributed Ledger Technologies.
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