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Chiliz (CHZ), like most other cryptocurrencies, came under selling pressure after the collapse of the FTX cryptocurrency exchange. The risk of further decline for Chiliz is still not over, especially after hawkish messages from major central banks.
The U.S. Federal Reserve, the European Central Bank, and the Bank of England hiked the benchmark interest rate by 50 basis points last week and signaled that it would keep lifting interest rates in 2023 in order to bring down inflation. Investors continue to worry that higher interest rates will harm the global economy, and the outlook for risk appetite in the near term is not looking good. Bridgewater Associates co-chief investment officer Greg Jensen said:
“During periods of high inflation like what the U.S. economy is experiencing today, recessions tend to last longer unless central banks slash interest rates quickly. You haven’t seen the bottom in risky assets, and it’s going to be a couple of years down cycle here.”
According to Greg Jensen, investors have yet to price in the coming multiyear recession that could weigh on stocks and cryptocurrencies even more. January 2023 could be a tough month for Chiliz (CHZ), and it is important to note that the crypto selloffs could gather speed if Bitcoin cannot hold at the $16,000 mark.
The cryptocurrency market is still unable to show positive signs and continues to face a deep trust crisis. The collapse of the FTX created unprecedented market turmoil that could last for several more months, and there are still fears that the collapse of the FTX could drag some other big exchanges into the mud.
Chiliz (CHZ) Price Prediction
The price of Chiliz (CHZ) has weakened from $0.30 to $0.10 since November 07, 2022, and the current price stands at $0.11. The price of this cryptocurrency is usually correlated with Bitcoin, and if the price of Bitcoin falls below $16,000, we could probably see CHZ at a lower price level than the current price.
The current support level stands at $0.10, and a break below this level would indicate that we could see CHZ at $0.09 or even below. According to technical analysis, Chiliz (CHZ) remains in a bear market, but if the price jumps above $0.13, the next target could be resistance that stands at $0.15.
Summary Of Chiliz Price Prediction
The price of Chiliz (CHZ) has weakened more than 60% since November 07, and the risk of further decline is still not over. The current support level stands at $0.10, and a break below this level would indicate that we could see CHZ at $0.09 or even below.
