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Why Chiliz is losing heat despite World Cup pomp; CHZ down by over 30%

Since the start of the 2022 FIFA World Cup, Chiliz’s native token has seen a sharp drop in value.

Due to the discovery of various issues, the sporting event has faced some controversy. Not to mention that just a week before the start of the World Cup, the collapse of the infamous FTX exchange shook the crypto world. But that’s not the main point here.

Despite some promising off-chain advances, Chiliz keeps fighting. The token is down more than 30% over the past two weeks.

There are many bearish hints in the technicals and statistics. If the price falls below $0.1451, short selling becomes an option.

This put additional strain on the already overburdened Chiliz ecosystem, which has struggled to attract investors and sports fans despite the testnet release of its Chiliz 2.0 update. However, CoinGecko only recently reported a 1.3% price increase.

When will CHZ get its zing back?

On a green candle, the current price of CHZ is $0.1677. An oversold reading of the Relative Strength index (RSI) can help clarify the recent surge in the token price.

However, the market is currently locked in a battle between bulls and bears, with prices remaining within the $0.3085 to $0.1451 range that reigned before the FTX brouhaha.

The market remains slightly bogged down in the distribution phase, with support and Resistance be temporarily breached and recaptured.

This has been the case since August. The situation could get worse as CryptoQuant observes an increase in foreign exchange reserves for the coin.

According to Messari, the asset’s volatility was 2.13, suggesting it was quite shaky. After leveling off at -1.23, returns also exhibit extremely bearish characteristics relative to this volatility.

Will there be a reversal?

Nonetheless, the MACD indicator is showing that a trend reversal is imminent. This could indicate a reversal as the RSI is oversold. However, since FX reserves are so high, any positive reversal would meet a huge negative force.

Some bearish break of the $0.1451 support could see the current market allocation structure collapse. A break of this support could push the price down Fibonacci-Level of 78.60 drift.

A breakdown below this level could send the price higher to $0.0791. If the market recovers from the FTX crash correction recovered, CHZ should be able to ride this wave and come out of it in better shape.

Why Chiliz is losing heat despite World Cup pomp;  CHZ down by over 30%, Crypto Trading News

CHZ Total Market Cap at $1.02 Billion on the Daily Chart | Featured Image: DailyCoin, Chart:

Source: Crypto News Deutsch

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