Chiliz has carved out a distinct segment as a crypto and blockchain challenge that facilitates sports activities token mining. Its native cryptocurrency CHZ consequently skilled vital progress within the first half of 2021 and peaked at $0.83 in April. Quick ahead a 12 months later and CHZ is price a 3rd of its ATH.
CHZ traded at $0.25 on the time of this press, which implies it improved considerably from its 2022 lows close to the $0.14 value stage. Nonetheless, it’s nonetheless closely discounted from its ATH however which may not be for lengthy. CHZ’s value motion because the begin of 2022 reveals that it has been buying and selling inside a cup and deal with sample.
Cup and deal with pattern- value course?
The cup and deal with sample is commonly thought-about a bullish signal, particularly as soon as the worth pulls again to type the “deal with” half. CHZ’s value motion shaped the deal with courtesy of its bearish correction within the first two weeks of April.
The sample which kicked off round 2 January was characterised by a curve within the value motion earlier than a resistance retest on the $0.32 value stage. That is essential as a result of the curve confirms its tail finish by testing resistance close to the identical stage as its start line.
CHZ’s RSI pulled again beneath the impartial zone within the final two weeks nevertheless it didn’t yield oversold circumstances. The MFI factors in the direction of vital outflows throughout the identical interval and briefly touched the 20-level. Elevated accumulation normally takes place when the MFI dips beneath 20 and we see some uptick on this indicator.
The MFI’s bounce again corresponds with the RSI uptick again above the impartial zone and the worth rally within the final three days. The MFI seems prefer it is able to verify a transfer to the upside. A have a look at some on-chain metrics additionally confirms the upside expectations.
Chiliz on-chain metrics revealed a rise in provide held by the highest non-exchange addresses within the final 4 weeks. Its quantity decreased within the final two weeks according to the worth drop nevertheless it registered an uptick within the final three days. Its market cap additionally yielded an uptick within the final three days.
The final time that a few of these metrics similar to market cap and quantity registered such positive factors, the worth achieved a rally within the following days. CHZ’s metrics and indicators align with the cup and deal with sample and this is likely to be an indication that it’s prepared for one more bull run.