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How Chiliz (CHZ) recorded one of the best recoveries rallies despite the FTX collapse 

Key Takeaways:

  • Chiliz price recorded one of the finest recoveries in the past 7 days and closed the previous trading day at $0.22 with a market capitalisation of $1.41 billion & circulating supply of 6.09 billion CHZ.
  • Despite the infamous FTX crisis, the token quickly recovered, reclaiming the levels above the critical resistance in a very short time frame.

Chiliz, one of the leading digital currencies specifically designed for sports and entertainment space, build on the blockchain-based sports entertainment platform Socios. The users can also participate in the governance of their desired sports brands. The native token CHZ has been incremental much influenced by the recent market trends until the recent market fall-out. However, with a slight ease in the market sentiments, the CHZ price may tighten the grip and rise high. 

Additional read: FTX Collapse Explained

Recent Updates:

  • The Chilliz team recently rolled out a new update called Chilliz Chain 2.0 which is the first layer-1 blockchain for the sports & entertainment industries

  • The Chilliz team announced that the Scoville Testnet Phase 4 called CAYENNE went live, recently that induced significant bullish momentum with the CHZ price.

Technical Analysis of Chiliz(CHZ)

CHZ/USDT | Source: Tradingview

  • The CHZ price appears to maintain a decent upswing after it bounced off from the bottoms created after the recent market collapse.
  • The trend may remain incremental within the bullish ascending pennant, while the lower trend line may act as strong support until it reaches the pinnacle.
  • The volume has within the average ranges and hence a significant price action may be expected but within an ascending range.
  • By the end of the monthly trade, the bulls may regain some strength that may uplift the price beyond the crucial resistance at $0.28 to reach the pivotal zone at $0.32, surpassing $0.3.

CHZ’s valuation metrics indicate bullishness

Chiliz MVRV & NVT Ratios | Source: Santiment

NVT or the Network to value Transaction is defined as the ratio between the market capitalization and the transaction volume. Meanwhile, the MVRV or the Market Cap to Realized value is a ratio between the two. Both indicators determine the strength of the network at a particular time and also signal the upcoming trend of the respective token.

A higher NVT ratio determines that investors are pricing CHZ at a premium as the network is growing in terms of value but not in terms of network activity. A rise in the MVRV ratio determines that the network is gaining back its value and soon may trend within the overvalued region. Hence highlighting the possibilities of a redistribution. In the case of CHZ, both ratios are raising which is a bullish indicator that the price may surge in the coming days.

CHZ’s Daily Active Address on the rise!

CHZ Daily Active Addresses | Source: Santiment

The daily active address or simply the active address is the number of addresses interacting with the network on that particular day. The numbers recorded are regardless of whether the addresses are selling the token or buying.  This indicator mainly points towards the user sentiments concerning the network. If a drop is recorded, then it is interpreted that the users are not more interested to trade.

However, the daily active address has spiked remarkably in the past few days which indicates the risen attention of the users over time. Meanwhile, the possibility of an increase in the sell trade is also possible but the volatility of the token remains high. This may further impact the price in the coming days.

Conclusion

Chiliz network has undergone significant upgrades due to which the price is believed to be impacted. On the other hand, the NVT/MVRV ratio also flashed bullish signals, indicating the network may gain enough value soon. Moreover, the rising address count also determines the increased interest of users which adds up to the bullish sentiments. 

Read more: Top crypto news today

Prices as on 17 November, 2022.

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