The global crypto market cap has taken a big hit this week, leaving most altcoins reeling. This even includes the Chiliz (CHZ) price, which was a top gainer last week.
The Chiliz ecosystem was glimmering with fan anticipation around the upcoming FIFA World cup. Chiliz (CHZ) price soared to a 7-month high of $0.29 on Nov. 7 amid heightened positive investor sentiment.
The massive crypto market meltdown that brought down nearly all cryptocurrency prices has led CHZ holders into deep losses. At the time of press, the CHZ price traded at $0.184, a 33% loss in just 2 days.
Can CHZ holders expect a comeback anytime soon?
Chiliz price rise supported by a spike in addresses
On Nov. 9, an update from Chiliz revealed that the CHZ token, along with other fan tokens, would be merging into a single blockchain. The same was done as part of the transition to Chiliz Chain 2.0, a new and upgraded version of Chiliz Chain.
The upgrade news should have caused a bullish price narrative, but this didn’t come to fruition due to the global crypto market meltdown.
Between Oct. 20 and Nov. 7, the CHZ price recovered to a 7-month high. Santiment data shows that the rise in price was supported by the largest amount of daily active CHZ addresses year-to-date.
Surprisingly enough, daily active addresses still held above-average values even as the price started to sink on Nov. 8. However, a sharp spike in active deposits suggested that CHZ was likely moving to exchanges to be sold as traders took profits.
IntoTheBlock data shows that Hodler addresses for CHZ grew by 11.61%, while the Traders group (less than 1 month old) saw 43.05% growth. However, ‘Cruisers’ saw a 14.57% decline.
A fall in cruisers suggests that medium and short-term holders were staying wary of price action while retailers and holders continued to ride the wave.
40 billion CHZ moved
The Age Consumed metric on Santiment showed that on Nov. 10, over 40 billion CHZ was moved in a single day. At press time prices, this is equivalent to around $7.2 billion.
A major spike in Exchange Inflows took CHZ inflows above $21 million, which was further indicative of investors and traders moving tokens to exchanges as panic selling ensued.
With the larger market tone taking a bearish turn, the In and Out of Money Around Price (IOMAP) indicator from IntoTheBlock, suggests no major supply wall for Chiliz.
According to the IOMAP indicator, the CHZ price could find support at the $0.152 level. It’s here that nearly 280 addresses hold over 36 million CHZ.
If bulls can manage to take over, CHZ could potentially gain back some ground and hold above the $0.17 support/resistance level, where over 2,000 addresses hold 339 million CHZ.
Source : beincrypto.com/can-chiliz-price-recover-40-billion-chz-moved-exchanges-sell-off/ by Varuni Trivedi - November 10, 2022