Key Takeaways:
- Chiliz prices have rallied by nearly 155% over the last three months.
- The upcoming Chain 2.0, combined with whale action and strategic partnerships have helped the rally.
- Moreover, CHZ prices broke out of a rounding bottom pattern in late Aug.
NEW DELHI (CoinChapter.com) — Chiliz (CHZ), the crypto token that powers the sports entertainment platform Socios, has outperformed its peers over the past three months.
While Bitcoin (BTC) and Ethereum (ETH), Chiliz’s much bigger compatriots, have been near-stagnant over the past few months, CHZ prices have rallied more than 155% between Jun 17’s low ($0.09) and Sept 16’s intraday high of $0.21.
Moreover, Chiliz prices rose by 78.42% in Aug, its fourth highest single-month gain ever. CHZ prices took bullish cues from the following fundamentals
1. Chiliz Chain 2.0
With several other networks, like Monero, Ethereum, etc., undergoing network upgrades, ‘Merges,’ and hard forks, Chiliz wasn’t to be left behind. So Chiliz founder Alexandre Dreyfus announced the blockchain platform’s plans to switch to its native chain, CHZ 2.0.
In a tweet, Dreyfus highlighted that Chiliz would decrease its reliance on Ethereum for launching its NFTs, stating, “We don’t have to rely forever only on ERC20 or ERC721 equivalent.”
Chiliz announced the Pequin update, the final update within the Scoville Public testnet, in Aug 2022. The upgrade introduced cross-bridge functionality to the platform.
More updates on the Chiliz Chain 2.0 might come from the upcoming Chiliz community event in Seoul, where CEO Dreyfus will share the roadmap for Socios and Chiliz.
2. CHZ Prices Broke Out Of Bullish Pattern
Meanwhile, CHZ prices forming a rounding bottom pattern also added tailwinds to Chiliz’s sails.
Analysts also call the pattern a saucer bottom. A series of price movements that graphically form the shape of a “U” form the bullish pattern, representing a long consolidation period from a bearish bias to a bullish bias.
The price target for the pattern is calculated by measuring the distance between the lowest point of the pattern and the neckline and then adding it to the breakout price level. As such, CHZ prices had a target of $0.382, a jump of 114% from the pattern’s neckline.
Related: Chiliz (CHZ) rallies 100% in a month ahead of Pequin upgrade
However, CHZ prices failed to reach the pattern’s predicted target after the breakout. Chiliz prices reversed after jumping just 49% from the neckline level. The formation of the rounding bottom pattern attracted buyers looking to profit from the breakout.
3. Chiliz Rallying On The Back Of Whales
A surge in whale transactions accompanied CHZ’s price rally out of the rounding bottom pattern. Per data from analytics platform Santiment, whale transactions hit the highest levels since Mar 29 earlier this year.
However, it might be possible that whales started booking profits on CHZ’s rallies, which could have led to Chiliz prices reversing their uptrend. In addition, Socios’ acquisition of a nearly 25% stake in FC Barcelona’s Barça Studios also added bullish cues to CHZ’s price action.
At writing, CHZUSD was trading at $0.205, up 7.38% on the day.
