CHZ has recently experienced a strong rally, with gains exceeding 13%. Many are asking what is driving this move. To be honest, behind this surge are both the project's strategic adjustments and market sentiment. But looking deeper, there are a few points worth noting.

First, let's talk about what Chiliz is doing. They are undertaking a rather aggressive transformation—upgrading from a simple fan token platform to a full-fledged SportFi protocol. It sounds impressive, but essentially they aim to tokenize the equity (RWA) of sports teams, allowing fans not only to vote but also to directly share in the value of major sports franchises. On the eve of the 2026 World Cup, they are increasing collaborations with national teams, planning to turn CHZ into the main currency for fan economy in sports events. This idea indeed has room for imagination.

From a fundamental perspective, CHZ was hit hard during the market lows but has now climbed back into the top 100, which in itself indicates something. More importantly, its tokenomics have basically cleared out—since 2022, the team and seed investors have not unlocked any tokens, meaning there is little selling pressure and no need to worry about large holders dumping. Plus, with an approximate 17% staking yield now, it remains attractive for those seeking stable returns.

But a warning is necessary here. From a technical standpoint, the overbought signals for CHZ are already quite clear—RSI6 has soared to 78.08, RSI12 reached 80.41, and RSI24 is at 75.81. These numbers suggest a short-term correction might be coming. EMA and MACD look okay, but in the context of overbought conditions, these indicators' significance is somewhat diminished.

There is also a historical pattern worth cautioning about. Tokens related to sports events often follow the "buy the rumor, sell the fact" routine. With more than a year until the 2026 World Cup, Chiliz will likely keep releasing positive news to attract hot money. However, once the event arrives and expectations are fully priced in, a "reality check" decline could occur. Historically, CHZ has faced resistance and profit-taking at levels like $0.044, $0.047, and $0.050, which are likely to become selling points again in the future.

In short, the medium- to long-term story for CHZ is correct, but short-term risks are accumulating. If you are long-term bullish on the SportFi concept, you can build positions gradually but avoid going all-in at this level. If you are a short-term trader, be cautious of the overbought signals.