• WhaleStats reports that Chiliz (CHZ) has become the most traded token among top 500 ETH whales.
• However, recent on-chain observations suggest that CHZ whales have been trimming their balances, curtailing the chances of a strong recovery.
• This may indicate that whales are now dumping CHZ, rather than buying it, which could lead to another crash.
Chiliz’s native token, CHZ, has been the topic of much speculation among investors in recent weeks. After crashing in the last two months, many have been expecting a strong recovery this month. That expectation may have been reinforced by a recent WhaleStats alert which reported that CHZ had surpassed NMR to become the most traded token among the top 500 ETH whales. But a closer look reveals that the opposite might be true: the whales may be dumping CHZ, rather than buying it, which could lead to another crash.
On-chain observations suggest that CHZ whales have been selling their holdings. The supply held by the top addresses has declined significantly since the end of December. This is around the same time that CHZ had been rallying, suggesting that whales may have been cashing out as exit liquidity was building up. The supply held by top addresses has continued to drop despite a surge in active addresses in the first week of January. This surge was likely due to investors anticipating a January rally. A further look at whale addresses through supply distribution confirms that whales are selling their CHZ tokens.
In addition, CHZ whales have been accumulating ETH over the last few weeks. This could be seen as a sign that the whales are preparing to sell their CHZ tokens. The increase in ETH holdings could indicate that the whales are looking to use ETH to purchase CHZ tokens at a lower price.
Given this information, it appears that the whales are not buying CHZ, but rather they are selling. This could mean that any rally in the price of CHZ may be short-lived and could be followed by another crash. Investors should be cautious before investing in CHZ and should consider the risks associated with investing in a volatile asset.