Even token that will benefit from massive sports popularity has questionable future
As expected, ahead of the start of the World Cup in Qatar, the fan-themed token Chiliz is seeing massive volume inflows and matching price performance, with CHZ showing a 21% rally in the last two days.
On Nov. 20, the first official match between Qatar and Ecuador will mark the beginning of the FIFA World Cup Qatar 2022. The major event is aimed at bringing attention to all fans around the world, which is why the rise of CHZ on the market is not surprising.
The previous 70% was also fueled by the upcoming event. Unfortunately, the crash on the cryptocurrency market negated almost 100% of the growth CHZ brought to investors in the last few months, and the current rally might be the beginning of a journey to the upper border of the trading range.
Some analysts expect CHZ to perform well during the event but at the same time abstain from making long-term predictions, considering the unstable state of the cryptocurrency market and the possibly unpredictable path of the token after the World Cup is over.
From a technical perspective, CHZ is still moving in the rangebound, despite the extremely volatile 70-100% movement that may seem like the start of an uptrend or downtrend at first glance.
Since September, Chiliz has not broken the local support zone at approximately $0.177. Unfortunately, the same rule applies to the upper border of the range. The token failed to break through the $0.28 mark twice in the last two months.
At press time, CHZ is trading at $0.23 with a solid 21% price increase in the last two days.