At the time of writing this article, CHZ price action shows a perfect combination of 3 on-chain indicators. Each of them suggests making room for an explosive move. Considering the bullish nature of Bitcoin and the crypto market as a whole, this outlook could make sense for CHZ.
CHZ price is currently hovering around $0.204. While there are signs of slight downside against the $0.177 support, the move could be an opportunity for buyers to accumulate before the CHZ explodes.
CHF/USDT | Source: TradingView
The recent surge in on-chain volume from 136.6 million on February 19 to 291.79 million on March 1 is a key sign of increased interest in the altcoin. The last time CHZ saw such a sharp rise was from Feb. 3-10, which pushed the price up 33% on the charts.
Considering the bullish momentum trajectory above, higher on-chain volume could push CHZ to move sharply north. This allows the price to reach higher highs. Additionally, on-chain volume is floating above the 200-day moving average (MA), which is a trend reversal.
Ground CHZ (red) | Source: Santiment
While on-chain indicators are pointing to an upcoming uptrend, a 365-day Market-to-True-Value (MVRV) pattern seems to reinforce a similar outlook for CHZ. This indicator is used to measure the average profit/loss of investors who bought tokens in the past year.
Readings below -10% indicate that short-term holders are losing money and usually when long-term holders tend to accumulate. Therefore, values below -10% are also referred to as “opportunity zones”.
For CHZ, the 365-day MVRV is trading at -46.8% at press time, reflecting the “huge” oversold condition. In particular, 46.8% of owners who bought CHZ in the past year are at a loss.
As a result, a move further south seems unlikely and a pullback seems logical, at least from the perspective of long-term investors.
Rate MVRV 365 days (orange) | Source: Santiment
To give credence to the MVRV indicator, the number of centralized entities holding CHZ has decreased from 2.9 billion to 2.8 billion in the last 3 months. About 100 million tokens have been delisted, showing investor confidence in its performance in the near future.
Offer on the stock exchange (pink) | Source: Santiment
Therefore, for-profit investors can accumulate CHZ and wait for an explosive move to the immediate resistance barrier at $0.356.
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