A combination of fundamental, network and technical catalysts propelled CHZ to its highest level since April 2022. What’s next?

The price of Chiliz (CHZ) is up about 35% weekly (WTD), hitting $0.26 per token on August 24th. In doing so, the token outperformed Bitcoin (BTC) and Ether (ETH) as they fluctuated between profit and loss. for the same period.

CHZ/USD versus BTC/USD and daily ETH/USD price chart. Source: Trading View
Here are the key catalysts that may be behind Chileese’s breakaway rally.

CZ 2.0
On August 22, Chiliz founder Alexander Dreyfus announced his intention to stop using the Ethereum blockchain to run his fungible and non-fungible tokens and replace them with his own proprietary CHZ 2.0 chain.

“We don’t have to rely on ERC20 or ERC721 equivalents forever,” Dreyfuss said, adding:

“At @chiliz, we believe we can bring some innovation in addition to interchangeable token formats. Because we work with over 100 of the biggest brands in the world, it’s easier to deploy and scale.”
The announcement coincided with CHZ stock, which posted a 19% intraday price increase on August 22, accompanied by an increase in trading volume. From a technical standpoint, the move showed traders’ confidence in the CHZ 2.0 announcement.

Daily CHZ/USD chart. Source: Trading View
Return of the Chilean Whales
The CHZ price boom this week also coincided with a surge in whale activity.

Notably, the number of CHZ transactions worth more than $100,000 reached 105 on August 23, the highest number since March 29, according to data provided by Santiment. In addition, the price of CHZ rose almost 12.5% ​​on the same day.

Chiliz price compared to whale activity. Source: Sentiment
The parallel increase in CHZ whale activity, volume and price suggests that the majority of wealthy investors bought the token after the announcement of CHZ 2.0.

There is a tech outbreak
The ongoing Chiliz price rally is part of a technical breakthrough that began in mid-August.

On the daily chart, the CHZ broke out of its predominant cup and handle setup on August 14 after closing above the pattern’s neck area (red bar) as shown below. Traditional chart analysts consider the cup and handle pattern to be a bullish reversal.

The technical setup coupled with the CHZ 2.0 announcement may have encouraged traders to remain bullish on the CHZ. It could also mean that the token will continue to rise until it hits the Cup and hits a profit target of around $0.32, another 35% up from its August price.

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The goal is determined by measuring the maximum height of the cup and handle and adding the result to the cutout. In other words, the CHZ price could reach it by September given the current bullish momentum.

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Source: CoinTelegraph