Yerevan (CoinChapter.com) — Chiliz is itching for a voluminous upside breakout move heading deeper into April against a confluence of bullish fundamental and technical catalysts.
The CHZ/USD exchange rate trades inside a downward sloping parallel channel that appears like a “bull flag” pattern. In retrospect, bull flags are bullish continuation indicator that appears when an asset takes a pause from its prevailing uptrend. The price typically breaks out to the upside, rising by as much as the length of the previous uptrend, otherwise known as “flagpole.”
Depending on the level from where CHZ/USD breaks bullish, the pair expects to rise by as little as $0.618 (the flagpole height). Fundamentals support an upside scenario.
CHZ serves as a de-facto settlement token inside the Chiliz ecosystem. In retrospect, Chiliz is the developer of Socios.com, a sports fan engagement platform built atop a native blockchain. The project intends to provide sports and entertainment entities with ledger-based tools to engage and monetize their audiences.
In simple words, it helps simplify sports management. Teams can create their non-fungible tokens — digital sports memorabilia — attached with tangible team-related perks that drive future demand. On the other hand, fans get a unique way to support their team and get the opportunity to vote on certain team decisions.
“We,” read the Chiliz official whitepaper, “do so by building scalable service layers on top of our own private, proof of authority blockchain (the Chiliz chain). All of these projects are fueled by the Chiliz token ($CHZ), a chain-agnostic digital currency that is currently available on leading crypto exchanges around the world.”
That April Outlook
Chiliz will introduce a flurry of new features to its core protocol in April. That includes gamification, Fan Token Offerings (FTOs), new teams/sports, strategic partnerships (trading, e-commerce, etc.), new non-fungible token strategy, and many other updates.
Meanwhile, the CHZ token is one of the best performers heading into 2021, with its prices in the dollar market surging by more than 1,500 percent. Most of the demand for CHZ came from a booming craze for NFTs. The token now serves more than 50 projects and carries an overall valuation worth $1.94 billion at this press time.
Speculations expect to grow higher in the Chiliz market as alternative cryptocurrencies rally against a stabilizing Bitcoin. Meanwhile, it is likely for CHZ to hit its technical upside target.
Conversely, traders should watch out for any signs of aggressive fake breakouts. Placing a stop loss around trades could help minimize potential losses. Primarily, if the bull flag stretches by more than 40 percent from the local top, it risks a bullish invalidation.