Since the beginning of the 2022 2FIFA World Cup, the value of Chiliz native token has plummeted.
Due to the discovery of various issues, the sporting event has been met with some controversies. Not to mention that just a week before the World Cup’s start, the collapse of the infamous FTX exchange shook the crypto world. But then, this is not the main point here.
Despite some promising advances off-chain, Chiliz continues to struggle. The token is down more than 30% in the last two weeks.
There is a lot of bearish evidence in the technicals and stats. If the price drops below $0.1451, short selling becomes an option.
This added strain to the already overburdened Chiliz ecosystem, which has had trouble drawing in investors and sports fans despite the testnet release of its Chiliz 2.0 update. However, CoinGecko reported a 1.3% price increase just lately.
When Will CHZ Get Its Zing Back?
On a green candlestick, the current price of CHZ is $0.1677. An oversold Relative Strength Index (RSI) value may help to clarify the recent increase in the token’s price.
However, the market is currently embroiled in a battle between bulls and bears, with prices remaining within the $0.3085-$0.1451 range that prevailed prior to the FTX brouhaha.
The market remains slightly mired in the distribution phase, with support and resistance being momentarily breached and reclaimed.
This has been true since the month of August. The situation may be deteriorating as CryptoQuant observes an increase in exchange reserves for the coin.
According to Messari, the volatility of the asset has been 2.13, indicating that it has been quite shaky. Having settled at -1.23, the returns relative to this volatility likewise exhibit extremely bearish characteristics.
Will There Be A Reversal?
Nonetheless, the MACD indicator indicates that a reversal is imminent. This may suggest a reversal due to the RSI being oversold. However, because exchange reserves are so high, any positive reversal would be met with a tremendous negative force.
A certain bearish breach of the $0.1451 support could cause the current market structure of distribution to collapse. A breach of this support might send the price to the 78.60 Fibonacci level.
A breakdown below this level could send the price to $0.0791. As the market recovers from the correction triggered by the FTX crash, CHZ should be able to ride this wave and emerge in a better shape.
CHZ total market cap at $1.02 billion on the daily chart | Featured image: DailyCoin, Chart: TradingView.com