On Monday (September 19), a day when most of the top 50 cryptocurrencies (including $ BTC and $ ETH) were in the red, $ CHZ, the native token of the Chiliz blockchain, was up more than 5%.
The main reason why the cryptocurrency market (as well as the US stock market) performed badly today is that global markets are anxiously awaiting the conclusion of this month’s meeting of the Federal Open Market Committee (FOMC).
After the two-day FOMC meeting ends on Wednesday (September 21), Federal Reserve Chairman Jerome Powell will announce how much the FOMC has decided to raise the federal funds rate.
While most analysts are expecting a 75 basis point rate hike (i.e. 0.75%), some believe there is a 20% chance of a 100 basis point rate hike as inflation in the U.S. rose more than expected in August.
Earlier, on September 13, the U.S. Bureau of Labor Statistics reported that “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in August on a seasonally adjusted basis after remaining unchanged in July.” Besides, “over the past 12 months, the all-commodity index has increased by 8.3% before adjusting for the season.”
#Crypto is heavily skewed towards the outcome of the FOMC meeting on Wednesday, while indices are acting relatively calm.
What's the best case?
▫️ DCA and have a longer perspective.
▫️ Wait until FOMC is out.
▫️ Avoid leverage trading.
— Michaël van de Poppe (@CryptoMichNL) September 19, 2022
CHZ is up 172% in the last three months
While currently, with the exception of stablecoins, only 7 of the top 50 cryptocurrencies by market cap are in the green, $CHZ is one of the few coins that performed well gaining 7.05% (against the USD) over the past 24-hour period. In fact, $CHZ was the largest percentage gainer (against the USD) of these seven green cryptocurrencies.
Over the past three-month period, the performance of $CHZ has been even more impressive as it has increased from $0.0898 to $0.2450, which is an increase of more than 172%.
Earlier today, Chiliz CEO and Socios.com Alexandre Dreyfus tweeted about his upcoming trip to the Upbit Developer Conference in Busan, South Korea:
https://twitter.com/alex_dreyfus/status/1571829275187085313?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1571829275187085313%7Ctwgr%5E201128c9349e5f279051400fc58e254caa9e6ab4%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cryptoglobe.com%2Flatest%2F2022%2F09%2Fchiliz-chz-continues-to-outperform-up-over-172-since-crypto-markets-june-lows%2F In addition, $CHZ is also held by the top 500 Ethereum whales. https://twitter.com/WhaleStats/status/1571899758553219073?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1571899758553219073%7Ctwgr%5E201128c9349e5f279051400fc58e254caa9e6ab4%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cryptoglobe.com%2Flatest%2F2022%2F09%2Fchiliz-chz-continues-to-outperform-up-over-172-since-crypto-markets-june-lows%2F
$CHZ Price Analysis
CHZ is pivoting around the $0.245 resistance and $0.182 support for the past three weeks. After testing the $0.182 support line on September 8, the price of the CHZ token rose. The price has tested the $0.24 resistance level several times and it remains to be seen if the resistance can be broken.
At the time of writing, the RSI is at 58.64, which, in turn, indicates that the momentum is on the side of buyers. OBV shows some signs of the increase due to its overall trend being positive. However, CMF stands at -0.07. Thereby, showing that the cash flow is on the sell side.
One of the reasons for the increase may be due to the massive growth of this token in terms of community engagement. Community engagement metrics have seen a spike of +60.79% in social media mentions over the past month. And, CHZ also achieved a high rating of 66.11% in community activities.
The increase in its social media presence can be attributed to CHZ having multiple partnerships with different exchanges. CHZ also partners with various football teams to issue fan tokens.
In addition, trading volumes echo the same “picture”. From 250 million on September 15, the volume has increased to 887 million at the time of writing.
Its market cap also increased from $1.08 billion to $1.37 billion over the past four days. That is shown in the chart below:
CHZ token volatility has also decreased to 1.21. This can be seen as a positive sign for investors looking for a stable token to invest in.
Chiliz made two major announcements on September 15. The company has invested $100 million in the Barcelona football club’s digital projects.
The other announcement involves their senior management hiring a chief financial officer to handle operations. Both of these announcements attracted the interest of investors. While many factors are in favor of the CHZ token, investors should remain cautious before entering a trade as the price of CHZ can be subject to large fluctuations in the short term.
See also: Chiliz [CHZ] up +150% in 4 weeks