Chiliz (CHZ) Plummets 75.95% in 24 Hours Amid Market Turbulence

On SEP 6 2025, Chiliz (CHZ) dropped by 75.95% within 24 hours to reach $0.03925, following a sharp correction after a 97.89% surge over the past week. The price action reflects heightened market volatility, with the token down 187.73% over the last month and a staggering 5,219.51% over the past year. The rapid sell-off appears to stem from broader sentiment shifts in the crypto space and potential profit-taking after the recent rebound.

Technical indicators show a breakdown in key support levels, with the RSI diving into oversold territory and the MACD line crossing below the signal line, reinforcing the bearish momentum. Analysts project that CHZ could continue to face downward pressure until a new equilibrium is reached or until a significant catalyst emerges to reignite demand.

The token’s long-term performance remains under intense scrutiny, particularly as the 1-year chart shows an extended bearish trend with no immediate signs of reversal. While the 7-day gain offered a brief reprieve for bulls, the 24-hour drop has largely erased those gains, raising questions about the sustainability of short-term rebounds in the absence of fundamental improvements.

Backtest Hypothesis

A backtesting strategy was proposed to evaluate potential outcomes based on recent price behavior. The strategy focuses on RSI and MACD crossover signals, with an entry point triggered when RSI moves above 30 and the MACD line crosses above the signal line. Exit conditions are defined by RSI dropping below 70 or the MACD line crossing back below the signal line. This setup aims to capture short-to-mid-term rebounds while managing risk through stop-loss levels. When applied to CHZ’s recent price movements, the strategy showed limited effectiveness in the 24-hour timeframe, suggesting that market conditions may be too volatile for conventional indicators to provide reliable signals without additional filters or context.