Bluzelle made it to the top of CoinMarketCap’s movers and shakers list with its more than 100% price rally in a matter of weeks.
The two-week long surge has taken BLZUSD to the top and outside of the upper Bollinger Band, triggering a buy signal that could keep the rally going a while longer. Let’s take a look.
Bluzelle Triggers Bollinger Band Buy Signal
The Bollinger Bands are a breakout trading system designed by John Bollinger in the 1980s. It is a trend-following tool, volatility-measuring tool, and provides a variety of signals based on interaction with the basis and each band.
The middle line is a 20-period simple moving average (SMA), which we can see is turning upward with the change in trend. Importantly, the upper and lower Bollinger Bands are starting to expand, suggesting that more volatility is on the way.
The Bollinger Bands work well with W and M patterns. The first bottom in the W pattern in late 2022 closed outside of the bottom band. The most recent low in June 2023 did not close outside of the bands. This is indicative of a reversal and price immediately followed, rocketing to the upper band.
A buy signal in Bluzelle (BLZ) was triggered as a result. The buy signal is activated with a decisive close above the upper band. A stop loss is then placed below the middle SMA. It takes a powerful move to make it outside of the band, increasing the probability of continuation. However, a close outside the upper band is not a guarantee of success.
Do Project Fundamentals Support The Bullish Technicals?
It is thus important to understand the fundamental side of the Bluzelle project. Combining fundamentals and technicals we can get a more realistic understanding if the price action makes sense.
Bluzelle currently has a lot going for it including:
- Bluzelle is a Blockchain for GameFi.
- Bluzelle claims to achieve over 10,000 transactions per second (TPS), providing high throughput for applications. It also has “seamless” interoperability with other Cosmos-based blockchains.
- Capella, a NFT marketplace, is powered by Bluzelle.
- An important new development is Bluzelle’s support for GameFi. It powers GAMMA 4, the Crypto Sci-Fi Epic, a play-to-earn card battle game where players can earn BLZ tokens.
- GAMMA 4 is created by Bluzelle and Starloop Studios, a game developer company that has worked with major gaming companies like Square Enix, Bethesda and Ubisoft. This lends credibility to the quality of the game.
Overall, the increased utility for Bluzelle’s network through integrations and GameFi adoption seems to be driving enthusiasm and price gains for the BLZ token recently. Bluzelle shines in the market, fostering GameFi in the Cosmos ecosystem, a feat scarcely attempted by others. Plus, it emerges as a formidable competitor for Immutable X, a renowned GameFi player based on Ethereum.
