Is CHZ about to break out? Signals indicate that Chiliz is "stirring" to make a comeback.

After a period of absence from the market map, the Chiliz network has unexpectedly returned to the spotlight thanks to a surge in network activity in recent days. However, what concerns investors is whether this strong rise to the sky is only temporary or if it has enough strength to create a sustainable demand for the CHZ token?

At the end of June, Chiliz recorded an impressive breakthrough in network activity. Specifically, the number of transactions on the network skyrocketed from around 40,000 transactions on June 20 to nearly 260,000 transactions in just 10 days, reaching up to June 30.

Not stopping there, the number of active wallets also witnessed a skyrocketing increase of up to 3,000% during the same period. Before June 29, the Chiliz network recorded less than 2,000 active addresses per day, but by July 3, this number had exploded beyond the milestone of 30,000 wallets.

The excitement in the market may stem from expectations of a new wave of fan tokens set to be launched, amidst the continuously expanding Socios ecosystem with an increasing participation of sports clubs.

Not only stopping there, the Chiliz team also creates additional motivation for the community by officially launching a large-scale hackathon competition aimed at attracting developers to the ecosystem. These activities may be the reason driving the number of active addresses to rise to the sky in recent times.

Why is the speculation surrounding Chiliz rising to the sky?

The speculation surrounding Chiliz's native token CHZ is emerging as another potential factor contributing to the activity on the network. Although the upward momentum of on-chain metrics may reflect natural demand, the role of the wave of speculation quietly returning with CHZ cannot be overlooked.

Currently, the profitability of CHZ investors is at a significantly low level. According to data from Glassnode, the amount of tokens in a state of loss has reached a record high – a signal indicating that the pressure to take profits is almost gone.

The supply of CHZ is at a loss | Source: GlassnodeStatistics also show that less than 10% of the supply of CHZ is currently profitable, mainly due to the prolonged downtrend since December last year. During this period, CHZ has given up most of its previous recovery efforts and is now trading around the historical bottom.

This has led many experts to assert that CHZ is being undervalued. But the big question is: Could this be a sign of a new accumulation cycle quietly forming?

Evaluating the ability to form a rising trend for CHZ

As of now, CHZ is trading around $0.034 – equivalent to a decrease of up to 73% from the peak set in December 2024. Compared to the historical peak, the discount is even deeper, reaching 96%, reflecting a significant long-term decline.

The historical price action of CHZ/USDT on the daily chart | Source: TradingViewHowever, some positive signals are beginning to appear, indicating that a recovery is forming. Notably, the RSI has crossed back above the 50 level after falling into the oversold zone just 10 days ago – a sign that selling pressure may be weakening. At the same time, the MFI indicator also recorded positive money flowing into the market, further reinforcing expectations of renewed interest from investors.

Activity on the Chiliz network is also showing signs of improvement in recent days – a factor that could spark a new wave of attention towards CHZ. With the current valuation being seen as "cheap", many investors may consider this an attractive accumulation opportunity.

However, caution is needed: the current recovery signals are still not strong enough to establish a sustainable upward trend. The spot cash flow data shows that the demand remains weak, while the total open contract value (OI) in the derivatives market continues to stay low, below 20 million USD.

Although it cannot be definitively stated that there is a clear breakout, if the growth momentum of network activity continues to be maintained, the Chiliz ecosystem could fully attract the market's attention again. The future of CHZ will largely depend on the ability to maintain stability and sustainability in the project's on-chain activities.

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