Chiliz supply on exchanges shows concerning sign, here’s what to expect – CryptoNewsTo

Chiliz supply on exchanges shows concerning sign, here’s what to expect

  • Chiliz sends a sizable amount of CHZ to
  • Exchange flows reveal that exchange inflows have been growing as exchange outflows drop.

There are multiple factors that determine the price of a cryptocurrency, including demand and supply. An increase in the circulating supply without a demand shift may push down the price.

Such an outcome occurred a few hours ahead of the press time when a large amount of CHZ was transferred from Chiliz to the exchange.

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Initial reports reveal that roughly 1.8 million CHZ tokens were transferred to the exchange and that the funds were sent by Chiliz. But is this amount enough to influence the price of CHZ?

The CHZ transferred was worth roughly $250,000 which represents a small fraction of the total circulating supply.

The transferred CHZ alone was likely too small to have a meaningful impact on the price. This is reflected in the CHZ price which registered a slight uptick by 0.77% to its $0.13 press time price.

CHZ price action

Source: TradingView

The CHZ price hovered within the 50% RSI level at the time of writing. The bears appear to have lost their momentum within this range, meaning it is now acting as a psychological buy zone or a take-profit zone for short-sellers.

Although the 1.8 million CHZ transfer did not have a sizable impact on price action, it did contribute to exchange flow characteristics.

It may also offer potential insights into what to expect moving forward. For example- the exchange inflow indicator registered the highest weekly spike in the last 24 hours.

CHZ exchange flows

Meanwhile, the exchange outflow metrics reveal low activity, underscoring the lack of strong demand.

A deeper look into CHZ’s supply and demand dynamics reveal that the supply outside exchanges had an overall decline in the last 30 days.

CHZ supply on exchanges and outside exchanges

Source: Santiment

The supply of CHZ on exchanges has grown during the same time. The latest outflow from Chiliz to adds to this outcome and suggests that this has limited CHZ’s potential upside.

How many are 1,10,100 CHZs worth today?

What are the whales up to?

If the above observations prevail, then we will likely see an increase in sell pressure. Especially if the bearish volumes manage to outperform the prevailing buying pressure. The eventual short-term outcome is still subject to the level of market demand.

CHZ supply distribution

Source: Santiment

A look at the supply distribution reveals that top whales have been relatively inactive in the last 24 hours.

We did see some selling pressure from some of the top whales this week, while there was buying pressure from others.

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