Chiliz Bulls Continue to Watch Out as CHZ Feels a Bearish Impulse

The Chiliz bulls are hesitant since the expected trend reversal appeared on the chart. His Cayenne, the fourth and final phase of the Scoville Testnet, was released by the Chiliz team on October 24th. A new developer guide and associated his GitHub repository are also available.

In addition to this, Chiliz sees other positive changes as well. Tokens issued by the Italian Football Federation are offered on many cryptocurrency platforms. A few days ago, Chiliz also launched ChilizX, a token exchange dedicated to Chiliz fans.

CHZ, the network’s native coin, is experiencing strong bearish momentum at the time of this writing despite encouraging network and token growth metrics.

𝐒𝐜𝐨𝐯𝐢𝐥𝐥𝐞 𝐓𝐞𝐬𝐭𝐧𝐞𝐭 𝐏𝐡𝐚𝐬𝐞 𝟒 – CAYENNE is live! 🌶️

Introducing Chiliz Chain 2.0 developer guide and GitHub repository 🧑‍💻🎉

All the information you need to start building your local node is now available ✅#ChilizScoville ⚡️ $CHZ

— Chiliz ($CHZ) – Powering Socios.com ⚡ (@Chiliz) October 24, 2022

But with the FIFA World Cup just around the corner, questions remain. Will the CHZ suffer or will the cautious bulls finally find a breather?

Technicals don’t look rosy

CoinGecko reports that while CHZ has fallen over the past 24 hours, it has gained about 13% over the past week and 2.4% over the past two weeks. Long-term investors are responsible for this trend.

An inverted triangle has formed as a result of the previous price move, weighing $0.2078 as an imminent resistance point. This could pose a problem for long-term investors, as the start of the FIFA World Cup is expected to drive up the price of CHZ.

As of this writing, the CMF index is at 0.18, indicating that the bulls continue to dominate the market. However, this positive CMF value for him could be overtaken by a bearish Stoch RSI cycle. The link between CHZ and BTC has also been strengthened.

The current correlation coefficient between CHZ and BTC is 0.49, indicating that CHZ tracks Bitcoin price movements relatively closely. Nevertheless, despite the bearish Stoch RSI cycle, the momentum indicator favors the bulls.

Chiliz: Unjustified Resistance

The chart seems to indicate that the current bullish resistance is mostly unwarranted. However, a bearish Stoch RSI cycle could push CHZ price below his current support of $0.1863.

CryptoQuant’s stats show that CHZ’s foreign exchange reserves have fallen by 4.3% over the past 24 hours, but have increased by 13.77% over the past week.

CHZ needs to close out with a long bottom wick to stay bullish as the trading day progresses. Currently, CHZ is trading at $0.1903, a red candle with a long lower wick, so this could be the case.

CHZ market cap at $1.2 billion on the daily chart | Featured image from Somag News, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.