Chiliz (CHZ) faces falling pressure as whales flee, investors gradually lose interest.

Chiliz (CHZ) is currently trading around $0.032 at the time of writing on Thursday, after failing to meet a key resistance level earlier in the week. On-chain data reveals that whale wallets are reducing their holdings, and the level of discussion on social media is also declining, indicating that the appeal to investors is waning. Technically, the outlook is leaning towards the possibility of a correction, as the bears aim for lower support levels in the short term.

Whales reduce exposure to CHZ as the allure fades

The supply distribution data from Santiment is reinforcing the negative outlook for CHZ as “whales” – those holding large amounts of tokens – continuously reduce their holdings.

Specifically, whale groups holding from 100,000 to 1 million tokens (red line) and from 10 million to 100 million tokens (blue line) have sold a total of 101.54 million tokens since Sunday, creating significant selling pressure on the market.

Chart of CHZ supply distribution | Source: SantimentAdditionally, Santiment's Social Dominance index for CHZ is also declining. This index measures the ratio of discussions about CHZ on cryptocurrency media platforms and has dropped sharply from 0.124% on Wednesday to just 0.054% on Thursday, reflecting weakening investor interest and decreasing community engagement. This indicates that the market is gradually moving away from the token amid increasing selling pressure.

Social dominance chart of CHZ | Source: SantimentIn a related development, a report from Bybit's Lazarus Security Lab shows that after surveying 166 blockchain networks, 16 networks were found to have the ability to freeze integrated funds, while 19 other networks could activate this feature with just a few minor changes in the protocol. The freezing mechanism can be implemented in various ways: hardcoded like on CHZ and VeChain, through configuration files like Sui and Aptos, or executing on-chain contracts like HECO.

These findings further highlight the bearish outlook for CHZ and related blockchains, as they expose potential risks of centralization and governance vulnerabilities in many ecosystems, raising concerns about trust, control, and censorship resistance in networks that are supposed to be decentralized.

Chiliz Price Forecast: Bears Target Support Level of 0.025 USD

The price of Chiliz (CHZ) encountered resistance around the (EMA) 50-day exponential moving average at the level of 0.034 USD on Saturday and fell about 5% by Wednesday. This level coincides with the 61.8% Fibonacci zone at 0.034 USD, forming a significant resistance threshold. As of the time of writing on Thursday, CHZ is trading around 0.032 USD.

If the downtrend continues, CHZ may test the 50% Fib level at 0.029 USD. A close below this level could open up a deeper decline, targeting the next support at 0.025 USD.

Daily CHZ/USDT Chart | Source: TradingViewThe relative strength index (RSI) on the daily chart is currently at a level of 48, below the neutral threshold of 50, indicating that selling pressure is increasing.

Conversely, if CHZ closes above 0.034 USD on the daily timeframe, the upward momentum may be triggered, aiming for the next resistance level at 0.038 USD.

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