According to the cryptocurrency analytics platform, LunarCrushChiliz [CHZ] witnessed an increase in his social activity in recent weeks. As of October 12, the cryptocurrency asset’s social mentions hit a daily high of 9,460, its highest point in the past 90 days.
If you’re looking for interesting projects to invest in, watch out for bursts of social activity, especially before the price.
Insights: https://t.co/S4Hd87jv4R pic.twitter.com/wLXeapUueD
— LunarCrush (@LunarCrush) October 12, 2022
The recent increase in CHZ’s social activity can be attributed to the launch of the network’s swap feature. At the end of Q3, Chiliz announced the implementation of the chain swap feature that will allow the Chiliz Bridge users to move their CHZ coins between different blockchains.
As CHZ registered a rally in its social mentions, so did the price. According to data from CoinMarketCap, the price has risen astronomically by 91% in the past 90 days.
CHZ on chain
Interestingly, while the price of CHZ rose over the past 90 days, the supply on the exchanges also increased. According to the on-chain analysis platform Santiment, 34% of CHZ’s total supply was in well-known exchanges. In the past three months, this number has increased by 10%.
When the supply of assets on the exchange witnesses such growth, it is an indication of an increase in short-term selling pressure. However, CHZ did not react negatively to this and was able to record a price increase.
Within the 90-day period examined, several CHZ investments made gains, according to data from Santiment. A look at CHZ’s Market Value to Realized Value (MVRV) on a 90-day average showed that a significant number of CHZ investors saw gains between July 27 and September 22.
However, on September 23, the MVRV started a downward trend, leaving it at -4.48% at the time of writing. This indicates a decline in the number of profit investments in recent days.
When the metric fell below the midline on Oct. 9, it was found that more CHZ holders held on at a loss than those who saw gains.
A strong correlation was also observed between whale activity and the price of a cryptocurrency asset. Data from Santiment revealed that CHD whales increased their holdings over the three-month period studied.
Interestingly, CHZ suffered from negative bias from its holders for most of the past 90 days. Weighted sentiment fell from a high of 7.45 on August 6 and has seen mostly negative values since then. At the time of going to press this was -0.449%.
This post Chiliz: Should you invest in CHZ? Watch out for social activity outbursts
was published first on https://ambcrypto.com/chiliz-should-you-invest-in-chz-watch-out-for-social-activity-eruptions/