Chiliz (CHZ) has seen its price decline 0.67% over the past hour to $0.06273, as part of a broader pullback across the cryptocurrency market today. Despite the short-term decline, analysis of key metrics for CHZ shows there are still reasons to be bullish on the token's prospects going forward.
CHZ is currently ranked #81 by market capitalization, which stands at $464.86 million. Trading volume over the past 24 hours was $35.12 million. Looking at CHZ's price performance, the token is down 1.13% over the past 24 hours, 1.74% over the past week, 20.17% over the past month, and 52.42% over the past 6 months.
While the recent price action has been negative, drilling down into the on-chain and technical data provides a more nuanced perspective on CHZ's outlook. Some key takeaways from the data analysis include:
- CHZ's trading volume indicates there is still significant interest in the token. The 24-hour volume of $35 million is well above average compared to recent weeks. High relative volume typically precedes price breakouts.
- CHZ is testing support around the $0.06 level, which has acted as a price floor multiple times this year. There is a strong cluster of buy orders around this area, making it likely that $0.06 will hold as support.
- CHZ’s relative strength index (RSI) is currently at 46, indicating the token is neither overbought nor oversold. This suggests room for volatility ahead, as the RSI is not at an extreme.
- On-chain data shows the number of CHZ holders and transactions has been increasing in 2023. More network activity is a positive sign of growing fundamental usage and adoption.
- Macro conditions may be weighing on sentiment, but CHZ-specific developments remain positive, including new partnerships, integrations, and use cases for the token. This suggests CHZ may outperform when markets stabilize.
What's the Outlook for Chiliz for the Rest of 2023?
Looking ahead, CHZ appears primed for a potential rebound in late 2023 or early 2024. Here are some of the key factors that support a bullish view:
- As cryptocurrency markets mature, projects with real-world usage like CHZ are likely to gain increasing traction. CHZ powers the Socios.com fan engagement platform, which continues to onboard major sports franchises and organizations.
- Cryptocurrencies with low market caps typically see greater volatility and upside during bull markets. If macro conditions improve, CHZ's $465 million market cap means it has lots of room for multiple expansion.
- Major sporting events in 2023 like the FIFA World Cup provide a catalyst for CHZ adoption. Fan token offerings and related promotions around these events attract new users.
- CHZ is establishing itself as a first mover in the sports fan engagement and rewards category. The project has key partnerships and integrations that will be difficult for competitors to replicate.
- Staking and DeFi opportunities are expanding for CHZ holders, providing incentivizes for investors to accumulate and hold the token. This reduces selling pressure.
Of course, risks remain, such as high inflation, recession fears, and potential CHZ competitors emerging. However, CHZ's strong use case, real-world traction, and upside potential in a recovering market make the token one of the more attractive cryptocurrency investments for late 2023 and 2024. An entry point around current prices seems prudent.
How Can You Profit from Trading Chiliz Fan Tokens?
Chiliz fan tokens like $JUV (Juventus), $PSG (Paris Saint-Germain), and $BAR (FC Barcelona) have emerged as popular assets to trade alongside CHZ itself. These fan tokens provide price exposure to major sports brands, while often seeing higher volatility than CHZ. Here are some tips for profiting from trading CHZ fan tokens:
- Take advantage of events and news - Fan token prices react strongly around major matches, transfer news, and other club announcements. Be ready to trade the volatility when events occur.
- Watch for new fan token listings - New fan token listings often see a spike in trading volume and price as hype builds. Get exposure early to ride the wave.
- Analyze the fan token/CHZ ratio - Look for fan tokens deviating from their historical ratio with CHZ, and trade the spread between the assets.
- Utilize stop losses - Fan tokens can see sharp swings. Use stop losses to protect profits and limit downside risk.
- Diversify across multiple fan tokens - Build a basket of fan tokens like $JUV, $PSG and $BAR rather than concentrating on just one.
Trading fan tokens allows tapping into CHZ's ecosystem from another angle. Along with the CHZ base token, fan tokens offer short-term trading opportunities, as well as potential to gain exposure to world-renowned sports brands.
Should You Be Buying Chiliz Now?
While short-term price action has been negative, analyzing both price metrics and on-chain data paints a more optimistic long-term picture for Chiliz. Real-world adoption continues growing through new partnerships and integrations, while underlying user activity is increasing on the platform.
With macro headwinds potentially fading later in 2023, tokens with strong fundamentals and real utility like CHZ stand ready to benefit. The token has surged from comparable oversold levels multiple times in the past year when conditions improve.
For long-term holders, accumulating CHZ during periods of negative sentiment and capitulation may prove opportune. Cost dollar averaging can mitigate timing risks. Those with a higher risk tolerance may also seek to trade around a core CHZ position, capitalizing on range-bound volatility.
In summary, while always prudent to maintain a diversified crypto portfolio, CHZ remains one of the more promising large-cap investments in the space. Buying zones could emerge if the $0.06 support level is retested, offering an attractive area to establish or add to positions.