Investors in the company include Andreessen Horowitz, Greylock Partners, True Ventures and Galaxy Investment Group. The latest funding round included Andreessen and Richmond Global Ventures. David Frazee, managing partner at Richmond Global Ventures, said that chia coin is secure, complies with regulations and can be audited, Bloomberg reported.
Social media users have expressed concern that the supply of XCH coins is pre-mined, which raises the possibility of so-called “pump and dump”, whereby the price is driven up and a large supply of crypto coins sold on the market, crashing the price while the original investors offload their holdings for profit. There are also concerns that the accessibility of mining the coin by simply downloading software will cause a shortage in hard drives and drive up costs.
Chia coin price analysis: crypto selloff weighs on launch
The chia cryptocurrency (XCH) price has been volatile since it launched less than a month ago, reflecting turbulence across the cryptocurrency markets in May. The coin launched at 1,595.04 against the US dollar on 3 May and traded between $745.79 and $1,934.51. It moved down to $561.89 on 6 May, climbed to $1,443.56 on 8 May, then dropped back below $1,000 to $903.23 on 10 May.
The price reached $1,692.62 on 14 May, but has since declined, trading between $700-800 in recent days.
Cryptocurrency prices have come under pressure amid concerns over increased regulation in the US and China, and comments on social media from Elon Musk about the environmental impact of crypto mining. Chia has not been immune from those moves.
But what is the outlook for chia coin's future value? Will the price rebound and set fresh highs?
Chia coin price forecast: what is the long-term outlook?
In its chia (XCH/USD) forecast, online forecasting service Wallet Investor predicts the price will climb from $667.63 at the start of July to $1,240.75 at the end of December 2021, and almost double to $2,248.98 by the end of 2022. Longer term, it projects the price will reach $4,453.27 at the end of 2025 and $5,084.41 by late May 2026.
Digitalcoin is less bullish in its chia crypto price prediction although it still expects the price to climb in the coming years. It forecasts that the coin price will average $1,190.04 in 2021 and $1,327.29 in 2022. Further out, it predicts the price will reach an average of $2,356.10 by 2025 and $3,566.34 in 2028.
The deep learning-based forecast from Gov Capital is bearish on the future of the coin in its chia coin price prediction, forecasting that although the price could rise to the $1,200 level a few times in June, it will ultimately drop to zero by the end of the month.
Technical analysis from CoinCodex is also bearish. There are 13 technical analysis indicators giving bearish signals, compared with only five offering bullish signals. The 3-day to 21-day simple and exponential moving averages are bearish, while the relative strength index and stochastics are bullish.
With the chia price trading around $783.74 on 30 May, there was technical support at $768.40 down to $735.21, with resistance at $801.59 to $834.78, according to CoinCodex.
Join Capital.com to follow the latest chia coin news, price analysis and forecast to spot the best trading opportunities.