CHZ Technical Analysis Feb 10

CHZ’s 24-hour trading volume is hovering around the 27.15 million dollar level; despite the downward price movement, the volume remaining below average indicates weak market participation. This situation suggests that the selling pressure is not organized and may carry potential accumulation signals.

Volume Profile and Market Participation

While CHZ’s current price is hovering around 0.04 dollars, trading volume realized at 27.15 million dollars despite the 5.38% drop in the last 24 hours. This volume level is 20-30% lower compared to recent weekly averages, revealing limited market participation. In the volume profile analysis, in the short-term bearish trend where the price remains below EMA20 (0.05 dollars), volume bars are moving in a narrow range. This shows that retail investors are not joining the sales and large players have not yet taken aggressive positions.

From a general market participation perspective, the decrease in volume while the downtrend continues can be interpreted as ‘weak selling’. For a healthy downtrend, an increase in volume is expected; however, the opposite is observed here. The 11 strong levels detected in 1D, 3D, and 1W timeframes (2S/3R 1D, 2S/2R 3D, 4S/3R 1W) emphasize that volume-supported resistances (0.0410 dollars, score 90/100) are more dominant. The volume profile is concentrated between Value Area High (VAH) 0.0450 dollars and Value Area Low (VAL) 0.0358 dollars; volume increase should be monitored as price approaches VAL.

Accumulation or Distribution?

Accumulation Signals

Despite the price decline, the low volume resembles a classic accumulation pattern. With RSI at 38.50 level near the oversold region, the volume decrease signals that selling may be exhausting. Especially when the 0.0358 dollar support level (score 74/100) is tested with volume, there are no volume spikes seen at previous lows; this suggests institutions may be accumulating at the bottom. The volume divergence observed in recent weeks (volume decreasing as price falls) may indicate the final stages of the Wyckoff accumulation phase. Price stability with low market participation strengthens the presence of hidden buyers.

Distribution Risks

On the other hand, the downtrend supported by Supertrend bearish and MACD negative histogram increases distribution risk. If volume does not confirm an upside breakout at 0.0410 dollar resistance (score 90/100), new lows (0.0326 dollars, score 61/100) may come. High-volume down days would confirm distribution; the current 27.15M volume has not yet crossed this threshold, but it could change if BTC pressure increases. To watch for distribution: If volume increases and price stabilizes, the test-off/cover-up phase may begin.

Price-Volume Harmony

Price movement is partially aligned with volume; since the 5.38% drop occurred on low volume, the trend remains weak. In a healthy bearish scenario, volume should increase on down moves and decrease on up moves – here it’s the opposite: volume is low on declines, and volume increase can be expected on potential rebounds (RSI divergence). Lack of volume confirmation suggests price may consolidate around 0.04 dollars. MTF volume levels carry bullish potential with 4 strong supports on 1W; short-term, there is no volume confirmation below EMA20.

Large Player Activity

Institutional-level activity is limited; 27.15M volume does not reflect large block sales in whale order books. Volume clusters are concentrated in the 0.0358-0.0410 band, with patterns indicating large players collecting liquidity in this range. Even without on-chain data support, steady low volume instead of sudden spikes (absent) signals passive accumulation. To monitor: Volume increase at 0.0450 resistance would confirm large buyer entry; conversely, it could lead to bearish target 0.0033 (score 4).

Bitcoin Correlation

BTC at 68,937 dollar level with 2.10% drop in downtrend; Supertrend bearish and rising dominance risky for altcoins. CHZ highly correlated with BTC (%0.85+); if BTC breaks 68,294 support, CHZ accelerates to 0.0358. Key BTC levels: Supports 68,294/62,910, resistances 71,974/77,324. If BTC does not rebound, CHZ volume decline continues, bullish target 0.0746 may delay. Detailed review recommended for CHZ Spot Analysis and CHZ Futures Analysis.

Volume-Based Outlook

Volume analysis is more hopeful than price suggests: Low participation weakens selling, accumulation potential high. Short-term, if 0.0358 support holds with volume, bullish reversal (0.0746 target); if broken, bearish continuation (0.0326/0.0033). For healthy uptrend, volume should increase 50%+; current low volume suggests consolidation. Wait for RSI/MACD divergence with volume confirmation – market sentiment may shift from neutral to bullish.