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Chiliz (CHZ), currently in the expansion phase, recently made an announcement that could serve as a catalyst for its adoption. Let’s take a closer look at what’s happening in the Chiliz ecosystem. Chiliz recently revealed that it is working on integrating the network with major exchanges. This announcement came during the discussion of the integration of the mainnet 2.0 with Binance.
Expanding into multiple exchanges could be seen as the most significant aspect of CHZ’s announcement. This development has the potential to increase the adoption rate of CHZ, as its availability on major exchanges could unlock a new wave of liquidity for the cryptocurrency. However, will this be enough to trigger a pivotal movement in the price of CHZ?
CHZ Could Rise
CHZ has been in a downward trend throughout August. In fact, it has been in a general downward trend since its peak in November last year. It recently dropped to a historic low of $0.060 earlier this month. However, at the time of writing, it showed signs of exhaustion.
In addition to the slowdown in bearish momentum, CHZ experienced a brief period of overselling during last week’s trading session. The Money Flow Index (MFI) entered the oversold zone and showed no signs of accumulation. Does this indicate that a difficult pivot is about to begin?
The Future of CHZ
CHZ has seen a decrease in its average coin age over the past three days, indicating a significant amount of cryptocurrency changing hands. Interestingly, there was also a significant increase in trading volume during the same period, which could be consistent with accumulation in the recent bottom range.
The Market Value to Realized Value (MVRV) ratio of CHZ has rebounded from the bottom range. This confirms that there has been significant accumulation in the past few days, reflecting the profitability of those who bought at the recent dip levels.
Despite the observed results in the MVRV ratio, whales may still be preventing CHZ bulls from reaching their full potential. The supply held by the top addresses metric was at its lowest level in the past four weeks, after showing some outflows in the past few days.
The mentioned whale activity explains why the price movement of CHZ has been suppressed. This indicates that whale activity is the most significant factor that CHZ investors should consider. A pivot in the supply held by the top addresses could potentially indicate the beginning of the next rally for CHZ.