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Chiliz (CHZ) Price Prediction: On-chain data indicates challenges

Chiliz (CHZ) price fell 8% on April 20 despite a series of token burns across the Socios fan token ecosystem. Bearish fears are mounting as Chili’s owners are piling selling pressure on the stock exchanges. Can CHZ hold the $0.12 support?

Chiliz (CHZ) is the native token of the Chiliz blockchain that powers the Socios sports fan token ecosystem. the team announce Burns symbol on a series of fan icons on April 18 and 19. The company too announce Its next launch of its sports blockchain is scheduled for May. However, on April 20, the price of CHZ fell by 8%, sparking bearish fears among investors.

A deep dive into on-chain fundamental data shows that CHZ could face further declines in the coming days.

Chilliz owners are flooding the market

Looking at the market orders currently being placed by CHZ holders across the top cryptocurrency exchanges, it appears that the supply is significantly outweighing the demand. The aggregate data provided by IntoTheBlock below shows that bearish traders have offered 56 million CHZ, while there are only 45 million CHZ buy orders.

Chiliz (CHZ) Bulk Exchange Order Books. April 2023 Source: IntoTheBlock

When the supply of an asset exceeds the demand, it usually creates downward pressure on the price. Hence, Chili’s short order at 11 million tokens provides wiggle room for buyers to push a hard bargain and push the price lower.

CHZ can struggle to find a new application

The number of new investors joining the Chili’s ecosystem has dwindled dramatically in recent weeks. The growth of the Chiliz network, according to data collected by Santiment, shows a 60% decrease between April 5 and April 20.

The red line in the graph below shows how the number of new daily CHZ wallet addresses decreased from 319 to 126 by April 20th.

Chiliz (CHZ) price vs network growth.  April 2023.
Chiliz (CHZ) price vs network growth. April 2023 Source: Emotion

Slowing network growth indicates that the Chili’s ecosystem is losing steam. And if the trend continues, CHZ may struggle to find new demand to push the price out of the current slump.

CHZ Price Prediction: A decline is looming below $0.08

With the bearish trend surrounding the Chiliz ecosystem, CHZ looks set to lose the current support level at $0.12. Although IntoTheBlock’s Global In/Out of Money data shows 9,000 addresses that bought 745 million coins around that price could try to prevent a drop.

If the support does not hold, the next resistance area is at $0.08. At this average price point, a pool of nearly 11,000 addresses holds 3.57 billion coins, which equates to $462 million. The block represents a huge level of resistance around $0.08 and you would need to face massive selling pressure to break the price further.

Chiliz (CHZ) GIOM price distribution.  April 2023.
Chiliz (CHZ) GIOM price distribution. April 2023 Source: IntoTheBlock

However, the market may turn green if CHZ manages to cross the $0.13 area. But as we saw above, selling a group of 9,000 addresses that bought 745 million coins here can stop the rally.

But if the coin is able to break above this level, Chiliz price could rally above $0.14 before hitting a more significant sell wall.

Moreover, the moneymeter indicates that only 12.58% of CHZ holders earn. While a staggering 79.25% remain out of the money, or at a loss for the current price.

Chiliz (CHZ) GIOM price distribution.  April 2023.
Chiliz (CHZ) GIOM price distribution. April 2023 Source: IntoTheBlock

Only 8.17% remained in break-even territory.

Disclaimer

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 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.

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