CHZ carriers may swallow a bitter pill after a false-positive result in recovery zest

  • CHZ becomes the most traded token among whales but this could be selling pressure.
  • CHZ whales are shrinking their stocks, which reduces the chances of a strong rally.

Investors who hold the CHZ native token are expecting a strong recovery this month after the crash of the past two months. A recent warning from WhaleStats may reinforce that expectation, but recent sightings on the chain may shatter those hopeful expectations.

Read the Chiliz (CHZ) 2023-2024 price forecast

According to WhaleStats, CHZ has surpassed NMR to become the most traded token among the top 500 ETH picks. At first glance, this could be seen as a healthy signal of bullish activity. However, a deeper assessment of the token reveals that the opposite may be true and CHZ may be heading for another crash.

The report that it is the most traded token among ETH whales may indicate that whales are now dumping CHZ. So far, many indications point to whale selling in the CHZ.

For example, the supply of headliners has dropped dramatically since the end of December. This was around the same time that CHZ saw a rally, suggesting that the whales may have taken advantage as they piled on liquidity on the exit.

Source: feeling

The supply of major titles continued to decline despite an increase in active titles in the first week of January. This increase was likely due to investors anticipating a rally in January.

Another look at election titles by delivery breakdown confirms that top titles are sold out. For example, addresses with more than 10 million coins have reduced balances since January 4th.

CHZ delivery distribution

Source: feeling

We also saw some backlogs from other constituencies in the first week of January. But most of the higher selection categories are now starting to contribute to the buying pressure and the selling pressure is also building up.

CHZ’s career is short-lived

CHZ prices are currently fluctuating near a four-week low, confirming that ordering activity has subsided significantly. Social dominance also fell to its lowest monthly level.

CHZ region fluctuation and social control

Source: feeling

How many CHZ can you get for 1 dollar?

All of the above metrics do not support expectations for a strong rally. This is reflected in CHZ’s recent performance. It has fallen by nearly 8% over the past four days, confirming increasing selling pressure. Thus, the activity shown by ETH whales may be selling activity which may indicate that they have made profits.

CHZ price action

Source: TradingView

CHZ previously rose nearly 20% in the first five days of the year. This rally may have given false expectations that the Swiss Franc was about to experience a strong upward recovery. Well, that doesn’t necessarily mean that the bulls are finished for the rest of the month.

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