CHZ Price Drop: What is the Reason for Chiliz’s Sudden 3.5 Million Dollars Change?

Crypto News- On the 9th of October, Chiliz (CHZ) a sports-centric blockchain project, executed a substantial withdrawal of $3.5 million from one of its multi-signature wallets.

This withdrawal marked the second-largest of its kind made by Chiliz in recent times, with a similar withdrawal having taken place just a month prior. Initially, the rationale behind these withdrawals remained shrouded in mystery. However, further details emerged, revealing that a portion of the CHZ tokens had been dispatched to the Binance exchange. This movement strongly suggested an intent to sell these tokens.

CHZ Price Drop: What is the Reason for Chiliz’s Sudden 3.5 Million Dollars Change?

As of the 9th of October, CHZ was trading at $0.05, as per CoinMarketCap. A closer look at the 4-hour CHZ/USD chart indicated a significant drop in the token’s value, plummeting from $0.060 to $0.056 on that day. The price decline was attributed to mounting selling pressure. Despite some efforts to bolster the price, bears in the market had successfully prevented CHZ from surpassing the $0.056 threshold. In the absence of a resurgence in bullish sentiment, there was a looming possibility of further price depreciation, with CHZ potentially dropping as low as $0.045, contingent on the interplay between buyers and sellers in the market.

For traders, it was imperative to take into account technical indicators like the Exponential Moving Average (EMA) to assess the likely direction of CHZ’s price movement. At the time of the report, the 9-period EMA, represented in blue, had crossed below the 20 EMA, depicted in yellow. This EMA crossover signified a bearish outlook for CHZ in the short term, signifying a greater likelihood of another price decline rather than an upswing.

Based on data sourced from Coinglass, CHZ’s weighted funding rate was recorded at 0.001%, signifying a positive funding rate. This data hinted at a prevailing bullish sentiment in the market, counterbalancing the bearish signals conveyed by the technical indicators. However, it’s vital to recognize that the cryptocurrency market is inherently volatile, subject to swift price fluctuations influenced by various factors, including market sentiment and breaking news developments.