Chiliz price analysis: Will the rally continue?

Chiliz could enter a consolidation in the near term

Contents

The broader cryptocurrency markets have been in a firm bear grip, with total market capitalisation hovering near the $1trn mark. While the major cryptocurrencies have been under pressure, there are pockets of strength that have been outperforming the broader market for some time. Chiliz, the digital currency for sports and entertainment by the eponymous Malta-based fintech provider, has risen more than 170% from its June lows. The buyers are attempting to resume the uptrend by pushing the price above the overhead resistance at $0.24 as of 23 August 2022.

The CHZ token received a boost after Socios.com, the blockchain provider for the sports industry, announced on 18 August that it had received regulatory approval to operate in Italy as a provider of virtual currencies and digital wallets for its fan engagement and rewards platform. The company already has a strong presence in Italy through partnerships with five of the country’s leading football clubs, AC Milan, Inter Milan, Napoli, AS Roma and Juventus, and also the top league, Serie A. 

In other positive news, Socios.com announced a partnership with the Catalan club FC Barcelona on 1 August to build digital products for fans and build sustainable revenue streams. Socios.com will invest $100m in Barca Studios, for a 24.5% stake in the club's digital content creation and distribution hub.

Could the burgeoning fan token space continue to attract investor attention? Could Chiliz go up? Read the CHZ price analysis to find out.

Chiliz price technical analysis: Weekly chart

Chiliz weekly chart 23 August 2022
Chiliz weekly chart 23 August 2022

CHZ’s price has been in a sharp recovery, which picked up momentum after bulls cleared the overhead hurdle at the 20-week exponential moving average (EMA). The up-move has reached the 50-week simple moving average (SMA), which is acting as a stiff resistance.

The bears defended the level aggressively as seen from the long wick on the last week’s candlestick but a positive sign is that the bulls did not give up ground. 

The 20-week EMA has started to turn up gradually and the relative strength index (RSI) has risen into the positive territory, indicating advantage to buyers.

The bulls are again attempting to push the price above the 50-week SMA. If they succeed, the CHZ/USD pair could rally toward the next target objective at $0.35 where the bears may again mount a strong resistance.

Contrary to this assumption, if the price turns down from the current level, it will indicate that the bears are defending the level aggressively. That could pull the price down to the 20-week EMA. A break below this support could tilt the advantage in favour of the bears.

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Chiliz price technical analysis: Daily chart

Chiliz daily chart 23 August 2022
Chiliz daily chart 23 August 2022

CHZ’s price has been in a strong uptrend for the past several days. The sharp rally to $0.24 on 19 August pushed the RSI deep into  overbought territory. This may have tempted short-term traders to book profits.

However, the bulls again purchased the drop to the 20-day EMA, indicating that the sentiment remains positive and traders are viewing dips as a buying opportunity.

If buyers thrust the price above $0.24, the uptrend could resume and the pair could rise to $0.26 and then rally toward $0.32.

Contrary to this assumption, if the price turns down from the current level, it will suggest that traders are closing their positions on rallies. The bears will then attempt to pull the price below the 20-day EMA. 

If they succeed, it will suggest that the uptrend has ended. The pair could then fall to $0.14.

Chiliz: Buy or sell this week?

Chiliz is facing profit-booking near $0.24 but the positive sign is that bulls have not given up much ground. If bulls drive the price above $0.24, Chiliz price analysis suggests a rally to $0.26 and then to $0.32. This bullish view will invalidate on a break and close below the 20-day EMA.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

 

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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