Following two consecutive months in the red, CHZ has surged 10% since the start of April. An in-depth analysis of the underlying on-chain data suggests that the accumulation trend among Chiliz Whales could soon trigger a price upswing. 

Chiliz is the native digital currency of the blockchain-based sports and entertainment platform, Socios. The CHZ token primarily enables users to participate in the governance of their favorite sports brands. The token price has been retraced 23% from its 2023 high. However, on-chain metrics suggest strategic crypto whales appear to be accumulating CHZ ahead of the busy summer in global sports. 

On-chain data provided by Santiment shows that a historically well-timed cohort of whales has begun to stack their CHZ bags in the past two weeks. The chart below shows that the whale holding balances of 10 million 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 current market value. When crypto whales invest such a significant amount of funds within a short period, it typically implies that they are positioned for a future price upswing. 

Notably, the historical buy/sell pattern of the cohort of whales mentioned above has been closely correlated to Chiliz price action. If this pattern repeats, CHZ holders can expect a price upside in the coming weeks. 

Correspondingly, the Network Value to Transaction (NVT) ratio also confirms the likelihood of a CHZ bull rally. Recent Santiment data depicts that the NVT ratio has declined 85% from 881.06 recorded on March 26 to a lowly 129.52 as of April 11.

The NVT ratio evaluates the value of a cryptocurrency network relative to the amount of trading activity on that network. It is calculated by dividing the market capitalization of the native cryptocurrency by the network’s daily transaction volume. 

When it trends downward for an extended period, it suggests that the underlying native token is undervalued. With the Chiliz NVT ratio on the decline for the better part of two weeks, crypto investors could soon pile on. 

In summary, the accumulation trend among whales and the underbought status of CHZ could see trigger heightened demand from strategic investors in the coming weeks. 

IntoTheBlock’s GIOM depicts that the CHZ could ride its next rally to a new year-to-date price peak of $0.19.

The chart below shows that CHZ could face minimal resistance until it reaches $0.14, the average price that 8,500 addresses had paid for 1.07 billion CHZ. If that resistance is breached, the rally could gain enough momentum to reach $0.19. 

However, at that point, the 8,800 addresses that paid the maximum of $0.19 to acquire nearly 2 billion tokens could pose a significant obstacle

Still, 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 could look to prevent that. 

Failure to hold that support could see the Chiliz price drop further down until it reaches the next significant support at $0.07.

The post Chiliz (CHZ) Whales Aim for Rebound, Could Summer Sports Trigger Price Rally?  appeared first on BeInCrypto.

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