Chiliz Drops to Monthly Low Despite FIFA World Cup Incoming

9 November 2022, 23:30 GMT+0000
Updated by Ryan James
9 November 2022, 23:30 GMT+0000
In Brief
  • Chiliz ecosystem powers various national team fan tokens such as Italian National Team, Argentina National Team, and Portugal National Team.
  • The tokens built on Chiliz Ecosystem are undergoing a listing spree by exchanges.
  • According to analysis, CHZ might undergo a bloodbath if there is a breakdown.
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The FIFA World cup is around the corner, and the anticipations are high for the Chiliz ecosystem. But it is still trading at a monthly low

The first match of the FIFA World Cup Qatar will be played on Nov. 20. The biggest sporting event is expected to be a massive boost for the Web3 adoption with sponsorships from Crypto.com and Visa. There is high anticipation from fan token ecosystems like Chiliz.

The fan tokens under the Chiliz ecosystem

Chiliz powers socios.com, the creators of fan tokens for various football clubs such as Manchester City (CITY), Paris Saint-Germain (PSG), Arsenal FC (AFC), AC Milan (ACM), and FC Barcelona (BAR).

 It is also the ecosystem behind the Italian National Team Fan token (ITA), Portugal National Team Fan Token (POR), and Argentina National Team Fan Token (ARG). 

Chiliz rallied from mid-October as the FIFA world approached closer. But today, the Chiliz token (CHZ) is trading at a monthly low despite the developments in the Chiliz ecosystem.

The developments in the Chiliz ecosystem

Since mid-October, the Chiliz ecosystem is in a listing spree. Poloniex exchange announced the listing of CITY, AFC, and PSG tokens on Oct. 24. On Nov. 2, Phemex listed six fan tokens from major football clubs for spot trading. On the same day, Bitrue enabled trading USDT pairs of BAR and PSG. The next day, the BitMart exchange announced a giveaway to celebrate the fan token listing of PSG, CITY, and ACM.

Not just football clubs, exchanges also listed fan tokens for national football teams. The Italian National Team Fan token has been listed on Bitget, Huobi, MEXC Global, and BitMart over the past couple of weeks. BitMart also listed the Portugal National Team Fan token last week.

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Chiliz also announced ChilizX- their native exchange for fan tokens last month. They have plans for their native chain- Chiliz Chain 2.0, which will be an Ethereum Virtual Machine (EVM) compatible chain. 

What does the price action say?

Even with the developments in the ecosystem, the token is trading at a monthly low. This is probably due to the recent FTX-Binance situations that have led to a decline in the entire crypto market. What does the price action say now?

The last two days have wiped off the entire uptrend of CHZ; the token is down more than 35% in two days. The price is trading at $0.1729 as of writing. But can it give a bullish reversal?

CHZ has already tested the solid support at $0.1659. On the weekly timeframe, the same area had given a bounce of around 30% most of the time when there was a solid dump. The presence of a 200-day Simple Moving Average (SMA) adds to the strength of the support.

However, considering the sentiments in the market, this zone may not give a V-shaped recovery. The price needs to consolidate around this area, forming a solid base and then giving a breakout.

If the price closes below this support, it will be a double-top breakdown. The bearish breakdown might send the price down to 0.1100 levels. Also, the 200-day SMA will act as a resistance if there is a closing below it. However, CHZ might give a slight bounce from $0.1413 if there is a breakdown.

Source: TradingView

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