Chiliz bulls have been reluctant to act since a potential trend reverse appeared in the charts. The Scoville Testnet’s fourth and final phase, Cayenne, was released by the Chiliz team on October 24. A new developer’s guide and associated GitHub repository were also made available.
Chiliz also has other positive developments. A number of cryptocurrency platforms have now made it possible to purchase the Italian Football Federation’s token. Chiliz has also created ChilizX, which is a token exchange, for Chiliz-lovers.
The network’s native coin, CHZ, is experiencing strong bearish momentum as of this writing, despite encouraging indicators of growth for the network and the token.
𝐒𝐜𝐨𝐯𝐢𝐥𝐥𝐞 𝐓𝐞𝐬𝐭𝐧𝐞𝐭 𝐏𝐡𝐚𝐬𝐞 𝟒 – CAYENNE is LIVE! 🌶️
Introducing the Chiliz Chain 2.0 Developer Guide & GitHub repo 🧑💻🎉
— Chiliz ($CHZ) – Powering Socios.com ⚡ (@Chiliz) October 24, 2022
The question is: Will CHZ suffer from the FIFA World Cup? Or will cautious bulls find some relief?
The Technicals Aren’t Looking So Rosy
CoinGecko says that CHZ is down 3% during the last hour, but it gained almost 13% and 2.4% respectively over the previous week. This trend is attributed to long-term investors.
Inverted triangles are formed due to previous price activity. $0.2078 is added weight as resistance. Long-term investors could find this a concern as the FIFA World Cup will likely drive the CHZ price up.
At the time of writing, CMF is at 0.18. That indicates bulls still control the market. This positive CMF index value may be overtaken by a bearish Stoch RSI Cycle. It is also becoming stronger that the CHZ-BTC link.
The current correlation coefficient between CHZ and BTC is 0.49, indicating that CHZ will track Bitcoin’s price fluctuations relatively closely. Despite the bearish Stoch RSI cycles, the momentum indicator favours bulls.
Chiliz: A Reluctance Not Unwarranted
The charts seem to show that the bulls’ current reluctance is mostly unwarranted. The price of CHZ could fall below the support level of $0.1863, however, due to the bearish Stoch RSI Cycle.
According to CryptoQuant statistics, the CHZ exchange reserve decreased by 4.3% over the last 24 hours but increased by 13.77% during the week.
CHZ’s bottom candle must have a very long bottom wick to allow bullishness in the market to persist. CHZ trades at $0.1903 and has a red candle with a long bottom wick.
CHZ Market Cap at $1.2 Billion on Daily Chart | Featured image from Somag News, Chart: TradingView.com Disclaimer: This analysis should not be taken as investment advice.