Chiliz (CHZ) is a native token of the Chiliz blockchain, the technology powering the Socios sports fan tokens ecosystem. CHZ has recently seen its price dropped 8%, while a series of token burns took place across the Socios fan token ecosystem between April 18 and 19. The bearish concerns are growing as Chiliz holders are piling on sell-pressure on exchanges due to high supply. On-chain data suggests that CHZ could experience more downside in the coming days.

Looking at the market orders, 56 million CHZ are offered for sale, exceeding the 45 million CHZ buy orders by 11 million tokens. This has been caused by the drop in the number of new investors joining the CHZ network. According to Santiment data, there has been a decline of new wallets of 60% between April 5 and April 20. This means that CHZ may experience difficulty in finding new demand to counter the current slump.

Now, CHZ is attempting to hold $0.12 support level. If it fails to do so, the next support level could be around $0.08. A cluster of nearly 11,000 addresses holding 3.57 billion coin, equivalent to $462 million, found at this average price point represents a formidable resistance. To break free of the current slump, CHZ needs to cross above $0.13, which seems unlikely as there is a sell-wall of 9,000 addresses holding 745 million coins there.

On top of it, most investors are still in a loss position as only 12.58% holders are currently in a profitable position while 8.17% remain in the break even zone and a staggering 79.25% are at a loss. All these metrics point that Chiliz is likely to continue its drop in the coming days.



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