How Chiliz NFT collection launch may offer therapy for CHZ investors

• Chiliz would launch its Scoville NFT soon after its recent Testnet phases.
• Active addresses increased but it was no guarantee for a CHZ uptick.

According to the Official Chiliz [CHZ] Twitter page, it will launch an NFT collection in less than 48 hours from press time. For context, the Scoville NFT collection forms a part of the project’s plan to move to the Chiliz Chain 2.0. 

𝐂𝐡𝐢𝐥𝐢𝐳 𝐒𝐜𝐨𝐯𝐢𝐥𝐥𝐞 𝐍𝐅𝐓 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 | 2 More Days ⏳

ℹ️ Will the NFTs have different rarities?

Yes, in total there are 7 different rarities. Each Scoville Testnet phase will have a different rarity.#ScovilleNFT ⚡️ $CHZ pic.twitter.com/M8wOFpZr0Y

— Chiliz ($CHZ) – Powering Socios.com ⚡ (@Chiliz) January 29, 2023

Realistic or not, here’s CHZ’s market cap in BTC’s terms

CHZ: To offer a remedy?

Recall that the blockchain-based project had partnered with Chainlink [LINK] in 2020 to foster NFT minting via its network. 

However, the case for this NFT collection paves way for the Scoville Testnet phase which would offer users enterprise-level blockchain solutions.

The Chiliz communique also noted that the digital collectibles would have seven different rarities. And, this comes after the Spicy Tesnet success on 25 January.

As the event draws near, CoinMarketCap showed that the CHZ value increased by 2.08% in the last 24 hours. Similarly, the trading volume within the same period followed an uptick.

With a 38.47% 24-hour uptrend, it meant that a relatively good number of transactions happened via the Chiliz network. But will the NFT launch come with a better CHZ performance?

According to the daily chart, it was unlikely for the token to continue the uptick in the short term. This was due to the indications from the Exponential Moving Average (EMA). 

At press time, the 50 EMA (orange) was stationed above the 20 EMA (blue) although the latter closed in on the former.

Regardless of an instance where the 20 crosses the 50, a significant price increase was largely implausible. Further price action from the Directional Movement Index (DMI) above laid a different scenario for CHZ.

At the time of writing, the positive DMI (green) was 29.95. The negative (red), on the other hand, was 11.86. Such a wide margin aligns that buyers are in market control. With the Average Directional Index (ADX), in yellow, largely above 25, it could provide an uptrend opportunity for CHZ. 

How many are 1,10,100 CHZs worth today?

NFT volume is shaky but…

However, the indicators alone might not be the only determinants of the possible performance. In times past, NFT collection launches involving projects like Polygon [MATIC] and Axie Infinity [AXS] were no guarantees for improved token performances.

In addition, data from Santiment revealed that the NFT trade volume on the Chiliz network hit the highest since 20 January. Still, this was no confirmation of increased interest especially as sales were not impressive yet at press time.

But on the bright side, Chiliz gained a lot of active addresses in the last 24 hours. At the time of writing, the metric was incredibly high at 3013. This implied that many unique users had sent or received tokens using Chiliz. 

Source: Santiment