Chiliz (CHZ) price has lost 23% in May as it approaches a new 2023 low. On-chain data show that investors seem to be losing confidence. What are the chances of a potential CHZ price recovery? 

Over the last 14 trading days, Chilz (CHZ) price has hovered around the $0.10 support level. With long-term holders selling and the Chiliz network struggling to attract fresh demand, CHZ price outlook now looks increasingly bearish. 

Here’s a data-driven on-chain analysis of how far CHZ could drop in the coming days. 

According to the data presented by Santiment, CHZ has been struggling to attract new demand since March 2023. The chart below illustrates that the last time Chiliz attracted up to 400 new users in one day was March 20, 2023. 

In comparison, the highest number of new entrants recorded this month was 190 on May 10. 

Network Growth measures the number of new wallet addresses created daily on a blockchain network.

It provides a rough estimate of the rate at which the Chiliz ecosystem attracts new demand. When it starts to decline steeply, as observed above, it indicates a dearth of new potential investors. 

This week, Chiliz long-term investors have increased their selling activity.  This is a further confirmation of the general bearish sentiment surrounding CHZ. 

The Santiment chart below shows that CHZ Age Consumed spiked significantly to 43.53 billion on May 23. This represents a 620% rise from the recent high of 5.97 billion recorded on May 20. 

Age Consumed evaluates the number of recently moved coins multiplied by the number of days spent in their previous wallet addresses.

When it spikes considerably, as seen above, it indicates that long-term holders are selling off large amounts of coins. 

In conclusion, a downward trend in Network Growth means that the heightened sell pressure from Chiliz long-term holders traders will likely result in a further CHZ price decline. 

IntoTheBlock’s IOMAP data suggests that CHZ still has significant support around the $0.10 zone. But with the level of bearish sentiment building up, that support level is not likely to hold for much longer. 

As seen below, a cluster of 847 holders that bought 512.85 CHZ at an average price of $0.10 could offer support.

If as expected, the support level cannot hold, CHZ could end up dropping as low as $0.086

Conversely, the bulls could invalidate the bearish Chiliz price prediction if CHZ breaks above the critical $0.105 resistance. 

But the potential sell pressure from the 967 investors that 1.05 billion CHZ at an average price of $0.105 could force another pullback. 

If the price manages to breach that resistance, Chiliz could proceed to reclaim the $0.12 milestone. 

The post Chiliz (CHZ) Price Drops to Its Lowest in 2023 —What’s Behind It? appeared first on BeInCrypto.

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