- CHZ starts flashing bullish signs but one key indicator suggests otherwise.
- Is there a demand for CHZ and what should we look for before the price pivots?
If you have been closely watching Chiliz and its performance, chances are that you might be thinking that it is a good opportunity now. This is because, at its press time price, it was discounted by as much as 64%. But is now really a good time to buy?
Read Chiliz (CHZ) price prediction 2023-2024
Perhaps assessing the current level of CHZ demand may help answer the question. Whales usually have a massive impact on price action. This is why the latest Whalestats announcement about CHZ should not be taken lightly. According to Whalestats analysis, CHZ made it into the list of the top 10 most purchased tokens among the 100 largest ETH whales.
JUST IN: $CHZ @chiliz now on top 10 purchased tokens among 100 biggest #ETH whales in the last 24hrs ?
Check the top 100 whales here: https://t.co/N5qqsCAH8j
(and hodl $BBW to see data for the top 5000!)#CHZ #whalestats #babywhale #BBW pic.twitter.com/9dUKnBOgOi
— WhaleStats (tracking crypto whales) (@WhaleStats) December 28, 2022
Can CHZ fire up its rockets?
The fact that ETH whales are buying is a good sign especially now that CHZ is retesting its current monthly low. But there is another reason why CHZ might be about to experience more buying pressure. It has been oversold for more than 10 days now. It is likely to experience more bullish volumes and a potential pivot.
Source: TradingView
While buying pressure from ETH whales and the overpriced zone lean in favor of the bulls, there is one observation that suggests otherwise. CHZ’s 50-day moving average recently crossed below the 200-day MA, creating a death cross. This is often considered a bearish sign and it might discourage investors from buying back at current levels.
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The conflicting observations do not end there. CHZ’s velocity soared by a noteworthy margin in the last three days. This suggests that we will likely experience more directional volatility. However, the network growth metric just hit a new monthly low, suggesting a lack of organic demand to support a potential pivot.
Source: Santiment
Meanwhile, the demand for CHZ on the derivatives market seems to be recovering. The Binance funding rate bottomed out on 18 December and has been recovering for the last 10 days. This does indicate that there was a recovery in demand when the price entered into oversold territory.
Source: Santiment
But what about the demand for CHZ in the spot market? Well according to the supply distribution metrics, most of the largest CHZ whale categories grew their balances in the second half of December. This is especially the case for addresses holding between 10,000 and 10 million CHZ.
Source: Santiment
On the other hand, addresses holding more than 10 million CHZ drastically reduced their balances in the second half of December. This may explain why CHZ’s price action appears suppressed despite the incoming buying pressure. The bulls will likely be unleashed once the large addresses start accumulating.
