Is Chiliz (CHZ) a good buy right now?

By: Ilija Rankovic
Ilija Rankovic
Ilija is a trader, analyst, writer and consultant with a prolific experience in the finance industry. He focuses on… read more.
on Jan 25, 2021
  • Chiliz is trading sideways since Friday despite the increase in trading volume.
  • The project has many well-known partners, including various top-tier sport clubs.
  • CHZ/USD is currently trading for $0.02, and is preparing to leave its triangle formation.

Chiliz (CHZ) has been trading sideways ever since Friday. However, its trading volume increased many times over since Dec 2020. Is Chiliz a good buy at the moment?

Fundamental analysis: Chiliz’ volume surged ever since its strategic partnership with Binance

Chiliz is a cryptocurrency option for blockchain-backed products aimed towards mainstream consumers. The project’s aim is to improve everyday experiences, such as fans’ engagement in entertainment, providing alternative payment solutions for conventional products, etc. Chiliz provides sports and entertainment entities with tools based on blockchain – all to help them engage and monetize their audiences.

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The project now counts numerous partnerships, including A.C. Milan, Paris Saint-Germain F.C., A.S. Roma, FC Barcelona, UFC, Natus Vincere, and more. These partnerships, alongside the major Binance strategic partnership, created a very bullish sentiment around Chiliz.

Looking at its recent performance, CHZ has posted a week-over-week loss of 0.82%, outperforming BTC’s loss of 5.68%. while falling behind ETH‘s 11.05% gain. CHZ is currently trading for $0.02, representing a 9.98% month-over-month gain. Chiliz is currently the 130th cryptocurrency by market capitalization, boasting a value of $110.56 million.

CHZ/USD technical analysis: Chiliz is possibly preparing for a big move

Chiliz has started to form a triangle formation once the announcement of the Binance strategic partnership came through. With its price moving sideways and the volume dropping (though it is still on extremely high levels when compared to levels prior to Dec 14), we might see an explosive move to either side soon. If we add to that the triangle formation narrowing more and more, the aforementioned move is even more likely.

Chiliz price direction will most likely depend on various factors, including Bitcoin’s and Ethereum’s price movement, as well as how CHZ handles the 21-day and 50-day EMAs.

CHZ/USD faces strong resistance at the 50% Fib retracement line, while its support is guarded by the 61.8% Fib retracement line and the 50-day EMA.

CHZ/USD daily chart

CHZ’s daily time-frame’s RSI stayed near the middle of the value range in 2021, with the current value of 52.06.

CHZ/USD 1-hour chart
CHZ/USD 1-hour chart

Zooming in to the hourly time-frame, Chiliz has been trading sideways ever since its price returned to the $0.02 zone. After a recent failure to break the 50% Fib retracement level, its price started descending slightlyy. CHZ is now contesting its 21-hour and 50-hour EMAs, which will most likely decide its short-term price direction.

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