Chiliz price is up +10% since the beginning of April. A group of whales, historically well placed on the asset, appear to have reinvested $16 million over the past two weeks.
Chiliz (CHZ): towards a new pump for the sports crypto?
After two consecutive months in the red, the Chiliz has rebounded +10% since the beginning of April 2023. On-chain data analysis suggests that several whales are accumulating the asset and could soon trigger a new bullish rally . At the beginning of the month, we discussed the novelties of the Chiliz Chain 2.0 and its implication in the future of the asset.
Chili is the native token of the blockchain-based sports and entertainment platform, Partners. The CHZ token primarily allows users to participate in the governance of their favorite sports clubs. The price of the token has retraced 23% since its 2023 ATH but the on-chain metrics are positive. Several crypto-whales appear to be hoarding CHZ ahead of a busy summer of global sporting events.
It’s Been a Month—Who’s Building on Chiliz Chain 2.0? (via @decryptmedia) https://t.co/Rh65qb7x6p
— Alexandre Dreyfus 🇹🇷 (@alex_dreyfus) March 28, 2023
Whales accumulate CHZ tokens
According to on-chain data from Santiment, a historically well-positioned pod of whales has begun to re-accumulate over the past two weeks. The graph below shows that whales holding balances of 10 to 100 million CHZ have added 120 million tokens between March 30 and April 11.
When crypto whales invest such a large amount over a short period of time, it usually means they are positioned for the next price rally. It is noticed that the pattern mentioned above is closely correlated to thechiliz price action. If this pattern repeats, CHZ holders should probably expect further price increases in the coming weeks.
The ratio NVT (Network Value to Transaction) also confirms the likelihood of a new bullish rally on Chiliz. The latest data from Santiment shows that the NVT ratio fell 85% from 881.06 on March 26 to 129.52 on April 11.
The NVT ratio assesses the value of a blockchain relative to the amount of trading activity on that network. It is calculated by dividing the market capitalization of the cryptocurrency by the network’s daily transaction volume.
If the ratio goes down for a long period, it indicates that the asset is undervalued. THE NVT system has been falling for almost two weeks on Chiliz but whales and investors may soon reverse this trend. The accumulation of whales and the undervaluation of CHZ could increase the demand for smart money.
Chiliz Analysis: Is a Rally to $0.19 Possible?
The index GIOM for IntoTheBlock indicates that the Chiliz could take advantage of the next rally to reach a new local high towards $0.19. The chart below shows that the CHZ might encounter minimal resistance at the $0.14 level. This figure is the average price that 8,500 addresses paid, amounting to CHZ 1.07 billion. If this resistance is broken, the rally could gain enough momentum and reach $0.19.
In this area, 8,800 addresses that paid the $0.19 for a total sum of around 2 billion tokens. This price could be a strong resistance for the Chiliz in the coming months.
In the opposite scenario, the bears could regain the upper hand if the CHZ loses its support at $0.12. If this support is not held, the price of Chiliz could fall to the next support at $0.07.
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This article does not represent investment advice in any way. The information provided here should not be used as the basis for making financial decisions. Investing in cryptocurrency involves risk and can lead to significant losses. You should only invest what you can afford to lose and do your own research before making any investment decisions.
Source : TradingView, IntoTheBlock, Saintly
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