Not long ago, we highlighted why November was an important month for Chiliz and CHZ by extension. A look at CHZ’s performance in the first week of the month confirmed that investors seized the opportunity. However, traders should also assess the potential downside risks.
This is the AMBCrypto price prediction for Chiliz [CHZ] For 2022-2023
The current CHZ position indicates that it may favor the downside rather than the upside. In addition, a recent WhaleStats analysis confirmed that CHZ is now in the top 10 cryptocurrencies by trading volume among the largest ETH whales.
Watch the top 100 whales here: https://t.co/jFn1zIOq03
– WhaleStats (tracking coded whales) (WhaleStats) November 7 2022
Interestingly, the majority of CHZ volume noticed significant selling pressure, especially in the last 24 hours. This outcome may depend on CHZ’s recent performance and position at the start of the week. The cryptocurrency embarked on a strong uptrend in the last week of October after retesting two-month lows.
CHZ is up 78% from its low in October, to a recent high of $0.29 in the past 24 hours. Since then, the altcoin has recorded a significant rebound to its price at press time at $0.26. This reflects the observed increase in volume according to WhaleStats.
The likely reason for the sharp downside may be the upcoming selling pressure as the recent rally has pushed CHZ into the overbought territory. As a result, traders who bought near the lower band have a greater incentive to take profits, which leads to higher selling pressure.
Its on-chain metrics also revealed that the headlines have contributed significantly to the current pressure on the downside. Assets held by the most important non-exchange address metrics showed that whales were trimming their budgets as prices rose. This can be enough confirmation that the headlines have made money.
The number of daily active addresses also decreased significantly, especially in the last 24 hours. This confirmed a slowdown in the demand for CHZ which was responsible for its rally in recent days.
Both bulls and bears are fighting for a taste of chz?
At the time of writing, it was still unclear whether the ongoing selling pressure would trigger a strong bearish pullback or regain its bullish trend. However, investors can consider these observations to reach a conclusion.
The average life of the CHZ coins has remained focused on a steady uptrend despite the selling pressure observed recently. This may be a sign that ongoing sales have not been so strong.
In addition, Chiliz continued to show strong growth in the network, which at the time of writing was at its highest monthly level. These observations indicate that there is still a lot of positive activity that can contribute to increased demand.