Chiliz token CHZ continued its downward trend over the past 24 hours, falling 11.41% to $0.02127. Trading volume rose to $67.13 million during the same period, an increase of 25.46% from the previous day. The price drop coupled with increased trading activity indicates high market participation, but buying pressure has not yet materialized.

Spot selling continues to dominate.

Looking at spot market data, the 90-day Spot Taker CVD is still dominated by sellers, indicating that active trading is more about closing out positions and selling, rather than buying on dips. Even when there are occasional rebounds during the day, the buying power is 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, the weak structure of CHZ continues.

$0.02 becomes a key short-term level

The daily chart shows that CHZ has broken below the previous support levels of $0.0287 and $0.0374, and is currently approaching the demand zone near $0.02. The downtrend line on the chart continues to suppress any rebounds, and the price has failed to hold above these levels on each attempt.

Meanwhile, the RSI has fallen to 26.89, entering oversold territory. This level typically reflects heavy selling pressure and may bring a short-term technical rebound. However, the overall structure remains bearish until the trendline resistance is lifted.

Funding fees turn negative

Sentiment in the derivatives market is also weakening. The position-weighted funding rate has clearly fallen into negative territory, currently at approximately -0.0731%. This typically means that short sellers are paying long positions to maintain their holdings, reflecting a market bias towards betting on further declines.

This indicator, which had mostly remained positive in previous months, has recently weakened rapidly, indicating a significant shift in the sentiment of contract traders. While deep negative funding rates can sometimes create conditions for short squeezes, the more direct signal at present is that short positions are dominant.

Based on both spot and contract data, $0.02 has become the most important level to watch for CHZ. If selling pressure remains high, prices may continue to decline. Only if buying interest reappears in this area can a short-term recovery be expected.