Chiliz’s [CHZ] latest exit – Why caution is the best way forward
Chiliz’s native cryptocurrency CHZ was not left behind as the market surprisingly switched in favor of a strong mid-week rally. In fact, CHZ managed to pull off an impressive 36% uptick in just three days.
CHZ bottomed out at $0.099 on 26 July before the bulls flipped the script the next day and embarked on a strong charge. The aforementioned hike pushed CHZ as high as $0.137 – Its highest price level since the first week of June this year.
Hot for the taking
The rally placed the altcoin’s price within June’s resistance zone. This retest has already resulted in a slight retracement on the charts. The same can be evidenced by the fact that the strong bullish uptick pushed the price into overbought territory, according to the RSI.
CHZ’s performance since mid-June has been characterized by low volumes, especially compared to its performance in April and May. It was a contrasting performance when you consider the heavy selling pressure and sharp price drop, especially in May. However, the latest uptick is reminiscent of that previous volatility which was packed with heavy volumes and strong price changes.
CHZ’s price uptick was backed by a substantial increase in its market cap from just below $600 million on 26 July to $808 million on 29 July. This sharp incline was also supported by spikes in CHZ’s social dominance during the same period.
CHZ’s rally resulted in a 0.19% drop in the total supply on exchanges. However, the same metric soon registered a recovery to its previous level.
This underlined the sell-off after the price hit the resistance zone on the charts.
Despite its latest upside, CHZ is still within the bottom range of the latest bear market. The alt’s bullish performance confirmed that there is still strong demand for cryptocurrency, especially at discounted prices.
However, it does not necessarily mean that prices will not retrace to previous lows or potentially lower levels. In fact, investors should move cautiously, especially now that the market is in recession.