Chameleons will often dig test holes before digging the hole that they will lay the eggs in. This is fine as long as she isn't abandoning the hole because she sees you watching her. If she sees you watching and abandons the hole often enough, she could become eggbound.
Signs of eggbinding include: eyes closed and sunken in, weak appearance, sitting on the floor of the cage, has given up digging, or digs a hole and turns around in it as if laying eggs and then fills the hole in...but there were no eggs laid. Once they are heading towards eggbinding, there isn't much time to act to save them from dying.
If she's up in the branches its okay to feed and water her...just don't leave any insects in the cage. They can bite her or chew holes in her while she's in the stupor-like state while she's laying the eggs, or they can chew at the eggs.
Good luck with her!
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