Key Takeaways:
- CHZ rallies 100% month-to-date
- Chiliz token could continue the uptrend based on bullish technicals.
- An upcoming upgrade is behind the rally.
YEREVAN (CoinChapter.com) – Chiliz (CHZ), the governance token for sports platform Socios.com doubled its investors’ bets month-to-date, ahead of a major upgrade. The digital asset’s value peaked at $0.26 on Aug. 23, the highest value since early April. The rally fizzled out hours later, and CHZ dropped to $0.24 on Aug 24.
Will CHZ get another leg up?
Chiliz token’s daily price action conquered a significant resistance line on Aug 23 and traded above its 200-day exponential moving average (EMA-200) for the first time since March 2022. Moreover, the chart printed two golden crosses between the EMA-20 and EMA-200, as well as EMA-50 and EMA-100, color-coded red, blue, orange, and green, respectively, on the chart below.
In detail, the golden cross is a bullish setup that occurs when a short-term MA crosses above a long-term MA. The crossover signals a bullish phase ahead for as long as the short-term moving average can sustain its dominance.
Chiliz low time frame chart agrees.
Additionally, a closer look at Chiliz’s one-hour chart revealed a ‘bull flag’ pattern that suggests another leg up ahead. The bull flag features two parallel trendlines that enclose the price action and take it slightly lower before another bullish kick. Moreover, the expected uptick could be equal to the move preceding the flag, pinning the CHZ target price at $0.26, 4% higher than the current value.
Chiliz token confirmed the bull flag in the Aug 24 New York session and broke the setup’s resistance. The upcoming session will show if the bullish expectations were justified.
Also read: It’s Official: The Euro Falls Below Parity With The US Dollar.
Meanwhile, the reason behind the rally is noteworthy.
Chiliz Pequin upgrade
Chiliz Network uses names of various pepper types to mark their upgrades, and the latest one is no exception. The platform advertised the upcoming upgrade on Aug 15 and noted that the Pequin pepper is “often 5-8 times hotter than Jalapeños,” meaning the last upgrade.
This upgrade offers a cross-bridge functionality to the native token CHZ, which is to be the final update within the Scoville Public testnet. After Pequin, Chiliz will launch its Chiliz Chain 2.0. CHZ founder, Alexandre Dreyfus, announced the news on Aug 22, fuelling the rally further.
Dreyfus also added that the development of the fungible token might lead to a complete exit from its dependence on Ethereum. Furthermore, data from Santiment revealed 105 CHZ transactions worth over $100,000 on Aug 23.
Chiliz has peppered its way into the top 40 #crypto assets by market cap and +150% price surge in the past 4 weeks. Whale transactions hit the highest network amount since March 29th. Even if whales are profit taking, the $CHZ rally could continue.
commented the platform.
