Fan token pioneer Chiliz price rallies 18% in a day, causing largest liquidations in three months

Chiliz price rallied over the past 24 hours to become one of the biggest gainers of the week. The cryptocurrency, while it might have brought profits to many investors, also caused losses to many traders who were pining for a crash in price. The credit for this, however, largely goes to the whales that have been consistent in their actions.

Chiliz price shoots up

Chiliz price can be seen trading at $0.1053 at the time of writing, rallying by close to 18% in the span of a day. The increase pushed the altcoin beyond the $0.1000 mark and registered a seven-month high, as the last time CHZ hit this price was back in June 2023.

As for what lies ahead, CHZ holders can expect further bullishness since the price indicators signal exhaustion, which generally leads to short-term corrections. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are signaling optimism at the moment.

Furthermore, Chiliz price is close to flipping the 50% Fibonacci Retracement of $0.1308 to $0.0681 into a support floor. This would provide CHZ with the necessary boost to breach the 61.8% Fibonacci level marked at $0.1068, which is known to be a bullish signal once tested as a support level.

CHZ/USD 1-day chart

However, if the investors decide to book profits on this rally and selling ensues, a likely correction is at hand. This could lead to corrections that might bring CHZ below $0.1000 to test $0.0921 and invalidate the bullish thesis.

Short traders suffer

Chiliz price rallying resulted in a considerable amount of shorts liquidations. The traders that were pining for a decline in price lost their open positions as nearly $1 million worth of short contracts were liquidated in a day. This is the highest liquidation observed in the case of CHZ in the past three months.

Chiliz liquidations

The reason behind this rally, while it could be a number of factors, primarily seems to be supported by the whales. Addresses holding between 1 million CHZ and 10 million CHZ have accumulated more than 60 million CHZ in the past month, valued at $6.39 million.

Chiliz whale accumulation

Currently, these addresses hold over 647 million CHZ, and since their accumulation in the past has resulted in rallies, their resilience will continue to benefit Chiliz's price. However, their selling is also to be observed closely as it could induce corrections.