Chiliz (CHZ) Price Analysis and Forecast

Chiliz (CHZ) is a relatively new cryptocurrency that got listed on the major cryptocurrency exchanges a little bit over six months ago, on July 1, 2019. At the time of its emergence, the coin was traded at a price of $0.0164, which is higher than its current price of $0.007 (as of the time of writing) by 58%. The crypto was immediately spotted and listed by one of the biggest trading platforms, Binance that now hosts half of the coin's average trading volume, which amounts to $2 - $2.2 million per day. 

CHZ has taken a somewhat prominent position in the global ranking, as for the new cryptocurrency, which is only 15 steps below the Top 100 on Coinmarketcap. The market capitalization of Chiliz now stands at $26 million, having decreased from its record levels of $66,4 million, acquired in November when the price of CHZ was at its peak.

Fundamentals: a coin for football fans

Although the initial period of Chiliz's entrance to the crypto scene can't be dubbed as overwhelming, it's not the price action that requires immediate attention, but the fundamentals. The reason is that CHZ is arguably the first cryptocurrency that was developed specifically for the sports industry, which is characterized by the outstandingly high capitalization and the global fan base that accounts for billions of people.

The coin has undertaken the role of a driving power behind the blockchain-based platform Socios.com that was created by the British tech company of the same name, which specializes in the development of tokenization solutions for sports teams.

Whereas the majority of new cryptocurrencies are entering the market with little to no products to back the promises of high returns, Chiliz has a lot to show for as its team has already launched the platform that is now available on Google Play and concluded a partnership deals with such prominent football teams as Juventus, Paris Saint-Germain, Galatasaray, AS Roma, and Atletico Madrid.

Juventus has already launched a fully-fledged app that lets the fans acquire the JUVE tokens that can be exchanged to CHZ. This means that the demand for Chiliz will increase over time and drive the price of the coin way beyond its all-time high of $0.0207.

Counter-attacking the downtrend    

On the all-time chart above, you saw that CHZ had immediately gone into a correction, accompanied by the dead cat bounce, after hitting the all-time high. That phase lasted from July till October, interrupted only by a short uphill hike above $0.01. Subsequently, Chiliz went on another bull rally but failed to reach the previous heights. The daily chart below shows the latest correction corridor, which CHZ has broken on January 3 with three green candles.

But the coin didn't manage to perform a full breakout and is now being pushed back towards the descending line. The 12-hour chart, and low trading volume, also shows that the coin has exhausted its strength for now and is likely to fall to the area of $0.0063 in the next few days.

Many major technical indicators are pointing at a strong sell: SMA and EMA are negative on all time frames, supported by the 9-day Hull Moving Average. The RSI and Stochastic remain neutral. The best thing to do right now would be to wait for a further dip and a confirmation of a trend reversal, and then enter a long position because Chiliz is likely to perform well this year.

Author: Alex Paulson for Crypto-Rating.com