Key Takeaways
The Chiliz (CHZ) price has underperformed in 2024. Chiliz has declined since February.
In August, the price fell to a low of $0.043, below the 2023 low of $0.053. However, CHZ has regained its footing since and recently reclaimed an important horizontal support area.
Can CHZ maintain this momentum and begin a belated upward movement, or will this rally fail like the other before it? Let’s find out.
Chiliz has an ongoing airdrop in which users who hold a stake in CHZ will receive PEPPER in return. On Oct. 10, 150,000 PEPPER will be airdropped for each CHZ held or staked. Binance and several other big exchanges will support the airdrop.
PEPPER is a community token that, according to the Chiliz website, “has no inherent value and is meant to be a fun and engaging experience”.
Since the start of September, the TVL in Chiliz has increased from $7.54 to $10.28 million. Some of this increase may have directly resulted from staking to receive the PEPPER airdrop.
While not a significant amount relative to the market cap of $625 million, this will likely add some selling pressure after the snapshot of the airdrop is taken at noon CEST.
The selling pressure could be exacerbated since CHZ holders also received the airdrop.
The CHZ price has increased, possibly in anticipation of the airdrop, and moved above its September high of $0.069 today, on Oct. 9.
On Sept. 25, the CHZ price broke out from a 91-day descending resistance trend line. While this is a bullish development, the Relative Strength Index (RSI) reached overbought territory, causing a short-term decline.
Nevertheless, CHZ moved again above the resistance trend line and traded inside the $0.075 horizontal resistance area.
If the CHZ price breaks out, there will be no more resistance until $0.110, meaning the upward movement could accelerate further.
While the daily time frame is somewhat inconclusive, the weekly one is more decisively bullish.
The Chiliz price analysis shows a massive deviation below the $0.060 horizontal area and subsequent reclaim. Significant upward movements often follow these deviations and reclaims.
Adding to the bullish readings, the weekly RSI has made a higher low and recently broke out from its bearish trend line. It now attempts to move above 50.
Even in the weekly time frame, the main resistance is $0.110, created by a descending resistance trend line. So, a CHZ price breakout above it will confirm the long-term bullish trend reversal.
The Chiliz price has regained its footing since August, reaching a horizontal resistance area at $0.075.
If it breaks out, CHZ can move to the $0.110 resistance. The weekly and daily time frames indicate that this is the main resistance level determining if the long-term trend is bullish or bearish.