The Chiliz (CHZ) price has steadied in the past few weeks and is now hovering near its highest level since April 9th. It has soared by over 76% from its lowest swing in April, making it one of the best-performing altcoins in the industry.
Dragonfly hard fork ahead
Chiliz is one of the biggest and most unique networks in the blockchain industry. The network focuses on the sports and entertainment industry. It runs the Chiliz Chain that enables sports teams like Manchester United, Liverpool, and Arsenal to launch their fan tokens. Today, these fan tokens have a market cap of over $500 million, as per FanMarketCap data.
Chiliz also runs Socios.com, a website and application that lets users trade fan tokens for the biggest teams in the world like Manchester City, Aston Martin’s Formula 1 team, and Everton among others. The app sees more market action when big games are going on.
The main catalyst for the Chiliz price has been the Dragonfly hard fork that is set to change the network and make it more vibrant. The upgrade was set to happen on May 21st but has now been postponed for a while.
According to its official statement in April, the upgrade will change the Chiliz Chain tokenomics by featuring a structured annual inflation rate that starts at 8% and then gradually drops to 1.88% in the next 14 years.
The hard fork will also introduce new enhancements to make the network friendly for developers. For example, it will enable developers to use new opcodes, precompiles, and other tools to enrich the decentralized app (dApp) development process. It will also integrate for type-2 transactions aligning with EIP-1559 to streamline transaction fee management.
The biggest challenge for Chiliz is that activity in the fan token ecosystem is not growing. For one, the market cap of all fan tokens has been around $500 million for a long time.
Chiliz price forecast
The 4H chart shows that the CHZ price has been in a strong bull run in the past few months. It has risen from April’s low of $0.085 to over $0.15, its highest swing since April 9th. The token has moved above the key resistance point at $0.1320, its highest swing on May 10th and April 24th.
Chiliz has also moved above the 50-period and 25-period Exponential Moving Averages (EMA). At the same time, the MACD indicator has moved above the neutral point while the Relative Strength Index (RSI) has moved to the overbought level. Therefore, the token will likely continue rising as buyers target the key resistance at $0.20.
