Chiliz price extends gains, trading above $0.054 on Tuesday after surging over 9% in the previous week. Fan Token launches and ‘Locker Room’ growth boost demand, pushing CHZ’s market capitalization above $550 million. Traders should be cautious as on-chain data suggests warning signs including rising retail activity, overheating conditions and seller dominance.
Chiliz price closed above the daily resistance at $0.039 on December 30 and rallied nearly 30% in the next 11 days. However, CHZ encountered slight rejection at the next daily resistance at $0.051 on Sunday and declined slightly. As of Tuesday, CHZ is trading 8% higher, above this resistance level.
If CHZ continues its upward trend, it could extend the rally toward the next weekly resistance at $0.063. The Relative Strength Index (RSI) on the daily chart is above the 70 overbought level, indicating strong bullish momentum. Moreover, the Moving Average Convergence Divergence (MACD) also showed a bullish crossover, further supporting the bullish view.
However, if CHZ faces a pullback, it could extend the decline toward the daily support at $0.039. Despite the ongoing price surge, CryptoQuant’s summary data supports a bearish outlook for CHZ. The data indicates that both spot and futures markets show signs of retail activity and overheating, suggesting a potential correction ahead.
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