The value of Chiliz (CHZ) has soared to a seven-month high, surpassing the $0.1000 mark and currently trading at $0.1051.
This surge triggered the liquidation of approximately $1 million worth of short contracts, the highest such liquidation in the past three months.
The sustained accumulation by large cryptocurrency holders, known as whales, has been a key factor in this rally.
Chiliz Price Rally
At the time of writing, CHZ is trading at $0.1053, marking a remarkable 18% increase over the past 24 hours. This surge pushed the altcoin above the $0.1000 threshold and established a seven-month peak, as CHZ last reached this level in June 2023.
However, a correction may occur if investors decide to realize profits by selling, potentially driving CHZ below $0.1000 to test the $0.0921 level, invalidating the bullish thesis.
Short Traders Suffer
The Chiliz price surge triggered significant short liquidations. Traders who anticipated a price decline faced losses as nearly $1 million worth of short contracts were liquidated in a single day. This represents the highest liquidation volume for CHZ in the past three months.
Whale Accumulation
Multiple factors may have influenced this rally, but whale support appears to be a primary driver. Addresses holding between 1 million CHZ and 10 million CHZ have acquired over 60 million CHZ in the last month, equivalent to $6.39 million.
These addresses currently hold over 647 million CHZ, and their past accumulation patterns have led to rallies. Hence, their continued support is expected to benefit the price of Chiliz. However, their potential selling activity should be closely monitored, as it could trigger corrections.