Chiliz (CHZ) extended its decline over the past 24 hours, falling 11.41% to $0.02127 as selling pressure intensified, while trading volume increased 25.46% to $67.13 million.
The sharp rise in activity suggests traders remained highly engaged despite continued weakness in price action.
Market participation increased as volatility increased, but buyers failed to establish significant support.
Instead, the token continued to print lower highs and lower lows, reinforcing the bearish structure that had developed over the past few weeks.
Increasing volume alongside falling prices often reflects aggressive distribution and recent market activity aligned with this trend.
Why are Spot traders still selling?
Spot market data continued to highlight persistent selling activity despite the increase in overall transaction participation. The 90 days CVD of the spot taker remained dominated by sellers, indicating that aggressive market orders largely favored exits rather than accumulation.
This trend suggests that market participants continued to accept lower prices to close their positions.
Although occasional buying interest emerged during intraday bounces, it failed to offset the broader wave of selling pressure. Such behavior often reflects low conviction among spot buyers, particularly during prolonged downtrends.
CHZ Approaches Key Support as RSI Weakens
Looking at the daily chart, Chiliz (CHZ) price approached a critical demand zone after losing several important support levels during the broader decline.
CHZ traded near the $0.020 area after falling below the $0.0287 and $0.0374 levels, both of which had supported price action earlier in the year.
The daily chart shows a well-defined descending trendline that continues to reject upward attempts. Meanwhile, the Relative Strength Index fell to 26.89, placing the indicator in oversold territory.
Such numbers often reflect intense selling pressure, although they can also precede short-term relief rallies as demand begins to return.
Despite this, the broader structure remained bearish as the price continued to trade below the descending resistance trendline.
If buyers defend the current demand zone, CHZ could attempt to rebound towards the $0.0287 resistance zone. However, a decisive loss of $0.020 could expose the asset to greater downward pressure.
Funding Rates Reveal Growing Bearish Conviction
Derivatives traders are increasingly positioning themselves for further downside as confidence deteriorates in futures markets. CHZ’s OI-weighted funding rate has fallen sharply into negative territory and reached approximately -0.0731% at the time of writing.
Negative funding rates generally indicate that short sellers have paid long traders to maintain their positions.
In this case, the decline reflects stronger bearish positioning as traders anticipate further weakness. The indicator had remained generally positive in previous months before reversing sharply downward in recent sessions.
This change highlighted a notable deterioration in market sentiment and suggested that traders had increasingly favored exposure to the downside.
Although sharply negative funding rates can sometimes create favorable conditions for short selling, current positioning primarily reflects expectations of continued weakness.
As long as funding remains deeply negative, bearish sentiment could continue to influence price behavior.
The $0.020 demand zone now represents the most important level on the chart. If buyers successfully defend this zone, CHZ could attempt a recovery towards higher resistance levels.
However, if the selling pressure persists and the support zone breaks, the downtrend could continue towards lower price levels.
Final summary
- Spot sellers continued to dominate activity despite increasing trading volume and participation.
- Negative funding rates and oversold RSI reflect growing bearish sentiment.
