After two consecutive months in the red, CHZ is up 10% since the beginning of April. An in-depth analysis of the core chain data indicates that the accumulation trend among chili whales could soon lead to higher prices.
Chiliz is the native digital currency of the Socios blockchain-based sports and entertainment platform. The CHZ token essentially enables users to participate in the management of their favorite sports brands. The token’s price has recovered 23% from its high in 2023. However, on-chain metrics indicate that strategic crypto whales appear to be accumulating CHZ ahead of the busy summer in global esports.
Crypto whales stack CHZ tokens
On-chain data provided by Santiment shows that a historically well-timed group of whales has started piling CHZ bags in the past two weeks. The graph below shows that whales with balances from 10 to 100 million CHZ added 120 million tokens between March 30 and April 11.
After a sharp sell-off in March, the newly added tokens are worth $16 million at the current market value. When crypto whales invest such a large amount of money within a short period, it usually means that they are in a position to see higher prices in the future.
Notably, the aforementioned whale group historical buy/sell pattern was closely correlated with Chili’s price action. If this pattern repeats, CHZ holders can expect a price rally in the coming weeks.
In contrast, the network value-to-transaction (NVT) ratio also confirms the CHZ’s bullish potential. Santiment’s latest data shows that the NVT ratio has fallen by 85% from 881.06 recorded on March 26th to a low of 129.52 as of April 11th.
The NVT ratio evaluates the value of a cryptocurrency network in relation to the amount of trading activity on that network. It is calculated by dividing the market cap of the original cryptocurrency by the network’s daily transaction volume.
When it is trending down for an extended period, it indicates that the underlying asset is undervalued. With Chiliz NVT falling for the better part of two weeks, crypto investors may soon be piling on.
In short, the trend of accumulation between whales and the no-buy situation in the CHZ region could lead to increased demand from strategic investors in the coming weeks.
CHZ Price Prediction: $0.19 may be the new 2023 peak
GIOM from IntoTheBlock envisions that CHZ could ride its next rally to a new year-to-date price peak of $0.19.
The chart below shows that CHZ may encounter minimal resistance until it reaches $0.14, which is the average price that 8,500 addresses paid for 1.07 billion CHZ. If this resistance is breached, the upside could gain enough momentum to reach $0.19.
However, at this point, 8,800 addresses that paid a max of $0.19 to get close to 2 billion tokens could be a huge hurdle.
However, the bears could gain the upper hand if CHZ loses its current support at $0.12. However, the 2,400 addresses that bought 394 million tokens here can look to prevent that.
Failure to hold this support could send Chiliz price down further until it reaches the next important support level at $0.07.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.