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Chiliz Price Prediction: Why CHZ Could Rally to $0.10 Soon

Highlights:

  • Chiliz is making higher lows in a bullish channel
  • Price action points to a possible rally to $0.10 and higher
  • Rally driven by growing real demand for Chiliz tokens 

Chiliz (CHZ) continues the strong uptrend that it has recorded in recent weeks. At press time, Chiliz was up by 10.87% to trade at $0.054. At the same time, Chiliz trading volumes have shot up intraday. In the last 24 hours, Chiliz trading volumes have shot up by 67.61% to stand at $164.07 million. 

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This surge in trading volumes alongside the price is an indicator that demand is getting stronger. As such, there is a good chance that despite the recent rally, Chiliz still has room for growth going into the foreseeable future. There are a couple of factors that support such price action for Chiliz. 

Decentral Protocol Driving Real Demand for Chiliz Tokens

One of them is the fact that the Chiliz blockchain has evolved in a way that gives real value to the native token. For context, a DeFi protocol called Decentral Protocol launched on the Chiliz blockchain back in December. Through this DeFi protocol, sports teams can tokenize expected future revenues from different sources, such as those from sports broadcasting.

Through this system, sports teams can borrow stablecoins against their expected future revenues. This use case has opened up real demand for the Chiliz token because transaction fees for such transactions are paid in the CHZ token. As sports teams start to embrace this approach in generating liquidity for their current needs, the CHZ token could rocket to new highs. 

High APY Pool Drawing Investors to Chiliz

Another factor that is driving real demand for the CHZ token is the launch of a $1 million USDC liquidity pool. This pool offers an above-market rate APY and acts as an incentive for new players to enter the CHZ ecosystem. For context, CHZ trading volumes have been consistently on the rise since the liquidity pool was launched. This is an indicator that demand is on the rise, and could continue to reflect the price of CHZ going into the future.

As CHZ starts to take a more non-speculative role in the sports ecosystem, the odds are high that institutional demand could rise. The result is that CHZ could continue to outperform the broader market.

Conformity to MiCA Regulations Driving Investor Confidence In Chiliz

The institutional aspect of Chiliz could be boosted by the fact that regulations around it are getting better. For context, Chiliz is fully compliant with EU regulations, specifically the EU’s MiCA framework. This is a big deal for Chiliz because it has put it way ahead of its competitors, many of which are yet to comply with key EU regulations. This perception of Chiliz being regulatory secure could continue to drive FOMO into Chiliz going into the future.

At the same time, it is likely to attract both institutional investors looking to invest in sports blockchains, but who want to do so in an environment of clarity. Developers could also start coming up with mass market products on the Chiliz blockchain going into the future. This adds to the demand Chiliz token continues to get and could play a role in sending it to new highs. All this at a time when interest rates are going down in most major economies could mean a rally to new highs in the foreseeable future. 

Technical Analysis – Chiliz Price Making Higher Lows In A Bullish Channel

Chiliz is in a clearly defined bull trend on the day chart. It is currently making higher lows, an indicator that every dip is being bought up. If this trend continues, Chiliz could rally to 0.10 in the short term.

CHZ
Source: TradingView

On the other hand, if there is a correction in the short term, the key level to watch would be the $0.045 support. A rally through this support could send Chiliz to prices as low as $0.03 in the short term. Of these scenarios, the odds are higher for a rally to $0.10 in the short term. That’s because of all the developments in the Chiliz ecosystem that are giving real demand to the token.

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