Chiliz (CHZ) price has lost 23 percent in May as it approaches a new 2023 low. On-chain data show that investors appearย to be losing confidence. What are the chances of a potential CHZ price recovery?ย
Over the last 14 trading days, Chilz (CHZ) price has hovered around the $0.10 levelย ofย support. With longstanding holders selling and the Chiliz network struggling to attract fresh demand, CHZ price outlook now looks increasingly bearish.ย
Hereโs a data-driven on-chain analysis of how far CHZ could fall in the coming days.ย
The Chiliz Ecologicalย system Has Been Attracting Fewer New Usersย
Reportsย by 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.ย
In comparison, the highest number of new entrants recorded theseย 30ย days was 190 on May 10.ย
Network Growth measures the number of new wallet addresses created daily on a blockchainย tech network.
It provides a rough estimate of the price at which the Chiliz ecologicalย system attracts new demand. Andย once it starts to decline steeply, as observed over, it signifies a dearth of newย possibilities investors.ย
Long-Term Holders are Looking to Sellย
Thisย comingย week, Chiliz longstanding investors have increased their selling activity.ย This is a further confirmation of the general bearish sentiment surrounding CHZ.ย
The Santiment chart below shows that CHZ Age Consumed spiked significantly to 43.53 Billion on May 23. This represents a 620 percent boost from theย pastย few high of 5.97 Billion recorded on May 20.ย
Age Consumed evaluates the number of recently moved coins multiplied by the number of days spent in their previous wallet addresses.
Andย once it spikes considerably, as seen over, it signifies that longstanding holders are selling off large amounts of coins.ย
Inย summary, a downward tendency in Network Growth impliesย that the heightened sell pressure from Chiliz longstanding holders traders will likely result in a further CHZ price decline.ย
CHZ Price Prediction: A Decline Toward $0.086 Could Be the Next Move
IntoTheBlockโs IOMAP data impliesย that CHZ still has wholeย lotย of support around the $0.10 zone. Onย theย otherย hand, with the level of bearish sentiment building up, that levelย ofย support is not likely to hold for much longer.ย
As seen below, a cluster of 847 holders that purchased 512.85 CHZ at an average price of $0.10 could offer support.
If as expected, the levelย ofย support cannot hold, CHZ could end up dropping as low as $0.086
Conversely, the bears could invalidate the positiveย tendency Chiliz priceย forecast if CHZ breaks over the critical $0.105 resistance.ย
Onย theย otherย hand, theย capacity sell pressure from the 967 investors that 1.05 Billion CHZ at an average price of $0.105 could force another pullback.ย
If the price manages to breach that resistance, Chiliz could proceed to reclaim the $0.12 milestone.ย
