Chiliz Price Prediction: CHZ prepares for 52% downswing on weakening on-chain metrics

Chiliz is holding at the edge of a high cliff, likely to freefall to $0.22.
The MACD drop toward the midline reinforces the bearish outlook.
Chiliz whales are offloading their bags in large volumes adding to the overhead pressure.
The downswing will be avoided if CHZ holds firmly to the support at the 50 SMA on the 4-hour chart.

Chiliz recently hit a snag at $0.98, halting the tremendous rally witnessed from January. A correction followed with the token losing nearly half of its value. In the meantime, CHZ struggles to hold onto crucial support that may save it from a potentially massive breakdown.

Chiliz declines could increase appreciably

The 4-hour channel has brought to light the formation of a descending triangle. This pattern is bearish and leads to a reversal after the asset experiences a significant upward price action. The triangle is created using two trendlines whereby one connects declining peaks and links the relatively equal troughs.

A breakdown is anticipated once Chiliz slices through the triangle support (x-axis). Triangles have precise breakout and breakdown targets measured from the highest to the lowest point of the patterns. As for CHZ, a 52% downswing would see it explore downhill levels toward $0.22.

CHZ/USD 4-hour chart

Santiment’s holder distribution metric reveals that whales are on a selling spree. The large volume holders have been emptying their bags since the all-time high of $0.98. Addresses containing between 1 million and 10 million coins topped out at 148 on March 12 but have dropped to 128 at writing. The 13.5% downswing in the whales suggests that overhead pressure will continue to rise in the coming sessions.

Chiliz holder distribution chart

It is worth noting that the 4-hour chart highlights support at the 50 Simple Moving Average. This buyer congestion zone, in conjunction with the triangle's x-axis, will try to stop the potential losses. If this support holds, Chiliz will commence a recovery mission, leading to a massive upswing toward a new all-time high.

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