Chiliz started the week strong, gaining 11% and reentering the top 100 most valuable cryptocurrencies by market cap. It was ranked 91st with a market cap of $495.24 million.
Despite this, there are doubts about whether Chiliz [CHZ] can maintain this level. A closer look at market data can provide insights into the coin’s short-term direction.
Derivatives data indicates strong bullish positioning
The recent increase in CHZ’s price was accompanied by a surge in activity in its perpetual futures market.
Open Interest in CHZ rose by $14.6 million in the last 24 hours, reaching $56 million, indicating growing confidence among traders and a willingness to invest in the altcoin.
The increase in Open Interest was mainly driven by retail investors, as higher trade counts suggest a broader participation in the market.
Source: CoinGlass
Positioning data also indicates a preference for long contracts, with CHZ’s Open Interest-Weighted Funding Rate turning positive.
This shift suggests that the capital flowing into the market is predominantly bullish, rather than for hedging or short positions.
Technical indicators support further upside
Despite the recent rally, technical indicators show strong buyer dominance, with the Accumulation Distribution indicator indicating meaningful participation in the rally.
Source: TradingView
Momentum indicators also favor the bulls, with the Aroon indicator showing strong bullish momentum.
This suggests that buying pressure outweighs selling pressure and CHZ could continue its upward trend.
Positive regulatory developments
Recent developments around Chiliz, such as joining the MiCA Crypto Alliance, have improved sentiment towards the project.
This collaboration positions Chiliz more favorably within the EU’s regulatory framework, which is seen as a positive for projects in consumer-facing sectors like sports and entertainment.
Investors view regulatory alignment as a long-term positive, boosting confidence in Chiliz’s compliance-first approach.
“As part of this collaboration, the Alliance supported the review and iXBRL conversion of multiple crypto-asset white papers across the Chiliz and Fan Tokens ecosystem, supporting MiCA-aligned, machine-readable disclosure.”
These developments have likely encouraged fresh positioning in CHZ, with investors seeing the potential for growth in the project.
Final Thoughts
- Chiliz saw $14 million in new inflows, driving buying pressure and pushing the asset higher.
- Derivatives indicators point to increasing accumulation, with market sentiment leaning towards further upside.
sentence in a different way:
The cat sat lazily in the sun, enjoying the warmth.
The cat lounged in the sun, basking in its warmth.