Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

Advanced

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

ETH has outperformed, bolstered by SEC Chair Gary Gensler's announcement of his Jan 20, 2025 departure, and suggested by growing open interest in ETH perpetual. This positive momentum extends to several large-cap altcoins previously scrutinized by the SEC, as indicated by bullish funding rates for long positions.

Please check out the report’s highlights.

ETH Open Interest Grows While BTC’s Declines

ETH is outperforming BTC following the announcement of SEC Chair Gary Gensler’s departure, as evidenced in perpetual swap markets. BTC open interest has decreased from last week's highs, while ETH contracts have increased. Additionally, ETH trade volumes constitute a larger share of daily trading as compared to much of the past six months, despite an overall dip in trade volumes this week. The gradual decline in BTC open interest, without a surge in trading activity, indicates a strategic repositioning, rather than a wave of liquidations.

BTC Option Curve Inversion Deepens as Price Retreats

The pullback in the spot BTC price from the $100K target has led to a flat ATM volatility term structure, with short-tenor options dropping below 60%. 

This trend continues the correlation between term structure inversion and BTC spot price returns observed since the U.S. election on November 5, 2024

. The decline in front-end volatility aligns with lower realized volatility levels. While demand for short-tenor options has moderated, there hasn't been a notable change in open interest for calls or puts. Instead, their growth has stalled at the week's start.

Sentiment in ETH options markets seems moderately more bullish than in BTC's during the recent decline in momentum from the post-election rally. Call options lead in both trading volumes and open interest. 

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 27, 2024): Signal on ETH Outperformance Against BTC Surfaces on Long-Term Contracts

Trading

Indicators

Tired of whales suddenly turning the crypto market on its head? Know where and when big money is flowing with the Chaikin Money Flow indicator.

Chaikin Money Flow Understanding What and When Whales Are Buying

Two main players in the financial markets are the large whales and the small retail traders. The large institutions and whales are the ones who typically move the market’s pricing, whereas the small retail trader typically doesn’t. Therefore, the small retail trader can gain an edge if they can spot where the big money is flowing.

Technical indicators like the Chaikin Money Flow are designed to alert traders when the market is accumulating and set to rally higher. In this article we’ll review what the CMF is, and how to read it so you can spot where the big money is flowing. 

The Chaikin Money Flow indicator tells traders if institutions, whales and investors are accumulating and buying crypto, or distributing and selling the market. Essentially, CMF indicates the money flow behind crypto.

The Chaikin Money Flow indicator (CMF) was created by stock analyst Marc Chaikin in the early 1980s as a way to measure the strength of a trend combined with the volume behind it. The CMF assumes that not all price trends are created equal. A price trend that’s moving higher, but closing each day near its low, is a weak uptrend compared to one with daily closes near the highs.

Trading volume also factors into a trend’s strength. An uptrend on weak or slowing volume is a sign of a weakening uptrend. On the other hand, strong and growing volume is a healthy sign of a strong uptrend.

The CMF was designed to mix these variables into one easy-to-read indicator that prints below the price chart and helps traders identify buying and selling pressure within the market.

What the Chaikin Money Flow Indicator Looks Like

The CMF appears as a line or area graph in a window, separate from the crypto’s price chart, oscillating between −100 and +100. This range makes it a bounded oscillator.

Many charting packages offer the CMF with the default setting of 20. However, a better default setting when using the CMF for crypto is 21 or 28, since many of the other markets only trade five days per week — and those markets contain about a four-week cycle of 20 trading days. This allows the indicator to capture a full cycle.

Crypto trades 24 hours a day, seven days a week. Therefore, 20 trading days is less than three full weeks. A 21 input setting allows for three full weeks, and a 28 input setting allows for a full four-week cycle.

The most important point within the CMF indicator is the zero line. When the CMF is above zero, the crypto trend is said to be higher. When the CMF is below zero, then the trend is considered to be lower. There may be instances where the price is moving higher, but on weakening volume. In those situations, the CMF prints lower readings, alerting the trader to slowing momentum to the upside.

There are three parts to the calculation of the Chaikin Money Flow.

The first part includes figuring the money flow multiplier.

Then, find the product of the money flow multiplier above and the total volume for that period.

Lastly, add up the products above for the number of periods set within the indicator (recommended 28 periods) and divide the result by the 28-period sum of the total volume.

As a result, the CMF depends on the value of the money flow multiplier. This value is positive when the closing price is above the midpoint of the range, and negative when the closing price is below the midpoint of the range.

If the volume is heavy, then that multiplier swings even further away from the zero line. If the volume is light, then the effect of the multiplier is muted.

Like any indicator you apply to the charts, the Chaikin Money Flow indicator has its strengths and weaknesses. Once you’re familiar with its pros and cons, you can carefully apply the indicator to help maximize results.

 indicator. Therefore, it’s most useful when applied to trending markets, where it helps crypto traders determine the strength and direction of a trend.

Once a trend loses strength, that loss of momentum appears in the indicator as divergence, alerting crypto traders to a potential trend change.

Like all indicators, the CMF isn’t always 100% accurate, and. a trader needs to keep the CMF’s limitations in mind. For example, when the market isn’t trending, the propensity for false signals increases dramatically  — especially when there’s volatility of price. 

This is because the CMF indicator utilizes a moving average of the price and volume. The moving average of these variables tends to lag, and won’t react as quickly to abrupt changes in market conditions.

The CMF indicator has two primary uses: to determine trend direction, and trend strength.

Determining trend direction is fairly easy. First, the zero line is the barrier dividing an uptrend from a downtrend. When the CMF indicator is above zero, price and volume trends are present, suggesting that the trend is strong or growing.

When the CMF indicator is below zero, the price and volume trends are implying a downtrending market.

In many instances, the CMF indicator will hover right around zero. This generally happens during a pullback within an uptrend or a rally within a downtrend. A pullback to the zero line offers crypto traders an opportunity to enter new positions in the direction of the trend.

At important pivot points within the larger trends, divergence will appear using the CMF. Divergence is when the price is moving in one direction, but the CMF indicator is moving in the opposite one.

For example, in the daily Bitcoin chart above, notice how during March and April 2021 Bitcoin’s price continues to move higher while the CMF creates a series of lower highs. These lower highs on the CMF occur because the closing price of the daily candles isn’t in the upper portion of the day’s range. 

Additionally, if the volume of trades on the up days is relatively muted — or the volume of trades on the down days is heavy — then the volume portion of the CMF will weigh heavily on its output.

The opposite is true when the market is correcting lower. When the price continues to dip and reach lower lows, look for the CMF to form higher lows as a sign of bullish support.

During the summer of 2021, Bitcoin corrected quickly, reaching its lowest closing price since January 1. Though the correction was aggressive, the inability of the CMF indicator to follow price lower was a clue that buying interest was developing for Bitcoin.

After the bullish divergence appeared, Bitcoin went on to double its price over the next several months.

Chaikin Money Flow vs. Chaikin Oscillator

Though similarities exist between the Chaikin Money Flow and the Chaikin Oscillator, the math behind each of the indicators and how to interpret their signals is quite different.

Both indicators were created by Marc Chaikin. However, the oscillator operates similar to the 

 (MACD) indicator, due to its use of two exponential moving averages. The MACD indicator calculates momentum by comparing the 12-period and 26-period exponential moving averages.

The Chaikin Oscillator (CO) uses the 3-period and 10-period exponential moving averages of the CMF, and is said to be in an uptrend when the indicator is above zero. When the CO indicator is below zero, then a downtrend is in force.

Some traders prefer using the Chaikin Oscillator, as it tends to react more quickly to reversals in the market.

For example, on the Ethereum price chart above, notice how the Chaikin Oscillator crosses the zero line before the Chaikin Money Flow indicator. This is because the CO is using exponential moving averages to capture the momentum of the market.

The CMF is useful in determining trends and divergences. However, making it a core part of a trading strategy leaves the strategy flawed and susceptible to whipsaws. 

Therefore, here are three suggestions for additional tools to use with the CMF to strengthen its signals.

Buying the market when the CMF falls to zero is a good way to buy the dip. But how can you tell if this is just a dip, or a larger correction that may carry the CMF significantly below zero and into a new downtrend?

One way around this is to add buffers to both sides of the zero line. A common buffer used by crypto traders is +0.05 and −0.05.

Therefore, when the CMF is dipping back to zero, the crypto trader won’t sell until −0.05 is broken to the downside. Once −0.05 is broken to the downside, then the probability of a larger correction increases.

Similarly, a trader won’t buy until the CMF crosses back above the +0.05 mark. That way, even if the CMF dips briefly below zero, we have confirmation that the crypto market may continue to accelerate higher.

One drawback to using the CMF as a stand-alone indicator is that identifying risk and take-profit levels can be elusive and inconsistent. Therefore, incorporating another indicator to confirm the trend will help traders identify risk and take-profit levels, complementing the CMF nicely.

For example, applying a 9-period and 34-period 

 (EMA) to the chart can act as a timing tool for entering and exiting a position. The trader would first look for the CMF to be above zero, then take only long positions when the 9 EMA crosses above the 34 EMA. A moving average crossover strategy is a common way to enter into positions.

Similarly, a sell signal is indicated if CMF divergence appears, or if the CMF drops below zero. 

, we can use trend lines to help indicate potential pivot zones.

On the daily price chart for Ethereum, above, we can see a long-term support trend line is in place from March 2020. This trend line has supported the Ethereum price through the entire uptrend of 2020 and the correction of 2021.

A trader may notice that when the price corrects lower in the summer of 2021, Ethereum merely revisits the trend line support.

At that point, the CMF indicator is hovering near the zero line, indicating that the longer-term trend is still pointed higher. In this instance, the CMF confirms the longer-term trend, and the trend line would be the timing indicator to enter.

An Ethereum trader could buy on the touch of the trend line and place a stop-loss just below the trend line. If the trend line breaks, then the mood of the market is changing, and the trader will want to exit the trade.

After bouncing higher in July 2021, Ethereum comes back to retest this trend line in September 2021, then bounds higher.

The Chaikin Money Flow indicator can be useful for spotting momentum-related trends like when big whales are moving in the crypto market. It’s a simple indicator that’s easy to read. However, the CMF is not a perfect indicator by itself, which is why many traders combine it with other tools, such as moving averages and trend lines.

Chaikin Money Flow (CMF): Understanding When Whales Are Buying

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