Chiliz (CHZ) Drops 75.95% Within a Day as Market Volatility Strikes

On September 6, 2025, Chiliz (CHZ) experienced a steep decline of 75.95% within a single day, falling to $0.03925 after a significant correction that followed a 97.89% rally during the previous week. This dramatic price movement highlights extreme volatility in the market, as the token has dropped 187.73% over the past month and an extraordinary 5,219.51% in the last year. The sharp decline appears to be driven by shifts in overall market sentiment and investors locking in profits after the recent upswing.

Technical analysis reveals that crucial support levels have failed, with the RSI plunging into oversold ranges and the MACD line moving below the signal line, reinforcing the ongoing bearish trend. Experts anticipate that CHZ may continue to experience selling pressure until either the market stabilizes or a noteworthy catalyst sparks renewed buying interest.

CHZ’s longer-term prospects are under close watch, especially since the one-year chart displays a persistent downward trend with no immediate indications of recovery. Although the recent weekly rally provided some hope for bullish investors, the sharp drop in the last 24 hours has wiped out most of those gains, casting doubt on the likelihood of short-term rebounds holding up without fundamental improvements.

Backtest Hypothesis

To assess possible outcomes based on recent trends, a backtest strategy was introduced. This approach utilizes signals from both RSI and MACD, entering trades when the RSI exceeds 30 and the MACD crosses above its signal line. The strategy exits when the RSI falls below 70 or the MACD drops beneath the signal line. Designed to seize short- to medium-term recoveries while employing stop-losses for risk management, the method showed limited success over the recent 24-hour period. This suggests that, given current volatility, standard indicators alone may not offer dependable signals without additional analysis or filters.