The Chiliz token (CHZ) continued to decline over the past 24 hours, dropping 11.41% to $0.02127. During the same period, trading volume rose to $67.13 million, an increase of 25.46% compared to the previous day. While the price decline coincided with higher trading activity, indicating sustained market participation, buying pressure has not formed effective support.
Sell orders in the spot market continue to dominate.
Looking at spot data, the 90-day Spot Taker CVD remains dominated by sellers, indicating that active trades are primarily driven by position closures and selling rather than buying on dips. Even during occasional intraday rebounds, buying pressure has been insufficient to reverse the overall downward trend.
This type of price movement typically indicates that market participants are willing to exit their positions at lower prices. Combined with the recent series of lower highs and lower lows, CHZ’s weak structure continues to persist.
$0.02 is a key short-term level.
The daily chart shows that CHZ has broken below two previously supportive price levels at $0.0287 and $0.0374, and is now approaching a demand zone near $0.02. The downward trendline on the chart continues to suppress rebounds, with each upward attempt failing to hold.
Meanwhile, the RSI has dropped to 26.89, entering the oversold zone. This level typically indicates strong selling pressure and may lead to a short-term technical rebound. However, until the resistance from the trendline is lifted, the overall structure remains bearish.
Funding rate turns negative
Derivatives market sentiment has also weakened in tandem. The funding rate, weighted by open interest, has clearly turned negative, recently standing at approximately -0.0731%. This typically indicates that short traders are paying fees to long traders to maintain their positions, reflecting a market bias toward further downside.
This indicator remained mostly positive for the preceding months but has recently weakened sharply, indicating a clear shift in contract traders' sentiment. Although deeply negative funding rates can sometimes create conditions for short squeezes, the more immediate signal at present is that short positions dominate.
Looking at both spot and futures data, $0.02 has become the most critical level to watch for CHZ. If selling pressure remains elevated, the price may continue to decline. However, if buying interest re-emerges at this level, a short-term recovery could be possible.