Chiliz (CHZ) skyrocketed in 2021, with its price gaining over 1000% in the past 3 months. What is the reason for this parabolic move, and should you consider buying some CHZ now?
Fundamental analysis: NFT boom pushes CHZ up
Chiliz, a digital currency for sports and entertainment platforms, managed to surge over 70% in the last 24 hours. The reason for this massive upswing is the recent boom in non-fungible tokens (NFTs). The cryptocurrency’s fundamentals skyrocketed as its on-chain data, as well as the overall demand, increased tenfold.
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However, we have to take into account the strength and sustainability of this upswing. While it is true that the surging price is only following the booming fundamentals, many analysts claim that moves like this are unsustainable, and that a major pullback is inevitable. Meanwhile, Chiliz is showing close-to-no signs of fading demand.
It’s important to note that Chiliz has formed several partnerships with major football clubs around the world. Its partner list now includes giants such as FC Barselona, AC Milan, and Juventus.
Chiliz’ market cap has reached a milestone of $1 billion just four days ago. However, its current value tripled, with the project currently being valued at over $3 billion.
CHZ posted week-over-week losses of 74.74%, heavily outperforming both BTC‘s week-over-week gain of 19.18% and ETH‘s 17.85% gain. Chiliz is currently the 32th-largest cryptocurrency by market cap, boasting a value of $3.19billion.
At the time of writing, CHZ is trading for $0.56, which represents a price increase of 1004.12% when compared to the previous month’s value.
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CHZ/USD technical analysis: parabolic move continues as bulls remain strong
Chiliz has been tending up for the majority of the 2021, with its price increasing tenfold in the past 3 months. The daily chart shows how parabolic the current move is, with the latest daily candle bringing CHZ from $0.358 all the way up to $0.595.
There are currently no signs of fading volume or descending price action on the daily chart. On top of that, Chiliz’ RSI has reached new highs, currently sitting at 95.99.
Taking a look at the hourly time-frame, we can see the latest upswing that quickly doubled the price of CHZ. The cryptocurrency is currently trading within this ascending narrow range, and shows no signs of stopping.
What’s next for Chiliz?
Chiliz will most likely continue moving up for fundamental reasons until it runs out of steam. When that happens, the price will retrace according to the Fib retracements, since its moving averages are so far away. However, it is too early to establish any retracement levels as the cryptocurrency hasn’t peaked yet.
When it comes to levels we can establish, we have seen slightly stronger resistance (now support) at the $0.32 level, as well as weaker possible consolidation levels at $0.39 and slightly above $0.50. However, the strongest support and resistance levels are the ascending top and bottom lines that surround CHZ at the moment.