CHZ becomes the most traded token among whales, but this could be selling pressure. CHZ whales trim their balance, reducing the chance of a strong rally.

Investors holding Chiliz’s native token CHZ are expecting a strong recovery this month after the crash of the past two months. The latest WhaleStats warning could bolster this expectation, but recent on-chain sightings could crush those hopeful expectations.

Read Chiliz (CHZ) Price Forecast 2023-2024

According to the WhaleStats, CHZ surpassed NMR to become the most traded token among the top 500 ETH whales. At first glance, this could be considered a healthy sign of bullish activity. However, a deeper assessment of the token reveals that the opposite may be true and that CHZ is headed for another crash.

The report that it is the most traded token among ETH whales may suggest that the whales are now dumping CHZ. So far, multiple indicators show that CHZ whales have been sold.

For example, the supply of the top addresses has fallen sharply since the end of December. This is around the same time that CHZ was rallying, indicating that whales may have been making money as exit liquidity was building.

Source: Sentiment

The supply of top addresses continued to fall, despite an increase in the number of active addresses in the first week of January. This increase was likely due to investors anticipating a rally in January.

A closer look at the whale addresses through the delivery distribution confirms that the top addresses sold. For example, addresses with more than 10 million coins have had their balance reduced since January 4.

Source: Sentiment

We also saw some accumulation of other whale categories in the first week of January. However, most of the top whale categories are now adding to the buying pressure and the selling pressure is also increasing.

CHZ’s short-lived rally

CHZ price volatility is currently near its 4-week low, confirming that demand activity has slackened dramatically. Social dominance has also fallen to monthly lows.

Source: Sentiment

How many CHZs can you get for $1?

All of the above statistics do not support expectations of a strong rally. This is evident from the latest performance of CHZ. It is down about 8% in the past four days, confirming an increase in selling pressure. Thus, the activity shown by ETH whales may be a selling activity that may indicate that they have taken profits.

Source: Tradingview

CHD previously rose about 20% in the first five days of the year. This rally may have created a false expectation that CHZ was about to experience a strong bullish recovery. Well, it doesn’t necessarily mean the bulls are done for the rest of the month.

This post CHZ holders may swallow bitter pill after false positive on recovery rally

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