Since a prospective trend reversal appeared on the charts, Chiliz bulls have been hesitating. 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.
In addition to this, Chiliz has seen other positive changes. The token issued by the Italian Football Federation has just been offered on many cryptocurrency platforms. A few days ago, Chiliz also launched ChilizX, a token exchange specifically for Chiliz fans.
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
However, with the FIFA World Cup just around the corner, the question remains: will suffering befall CHZ? Or, will the cautious bulls finally find some respite?
The Technicals Aren’t Looking So Rosy
CoinGecko reports that while CHZ has depreciated over the past 24 hours, it has gained almost 13% over the past week and 2.4% over the past two weeks. Long-term investors are responsible for this trend.
An inverted triangle formed as a result of previous price activity, adding weight to $0.2078 as a point of imminent resistance. As the commencement of the FIFA World Cup is expected to drive up the price of CHZ, this could be an issue for long-term investors.
As of this writing, the CMF index is 0.18, indicating that bulls continue to control the market. However, this positive CMF value could be surpassed by a bearish Stoch RSI cycle. The link between CHZ and BTC is also strengthening.
The current correlation coefficient between CHZ and BTC is 0.49, indicating that CHZ will track Bitcoin’s price fluctuations relatively closely. Nevertheless, despite the bearish Stoch RSI cycle, the momentum indicator favors the bulls.
Chiliz: Reluctance Unwarranted
The charts seem to show that the bulls’ current reluctance is mostly unwarranted. The bearish Stoch RSI cycle could drag the price of CHZ below its present support of $0.1863, though.
The exchange reserves of CHZ decreased by 4.3% in the past 24 hours, but increased by 13.77% in the past week, according to CryptoQuant statistics.
In order for the bullishness to continue as the trading day progresses, CHZ must conclude with a lengthy bottom wick. Currently, this may be the case, as CHZ is trading at $0.1903 with a red candle that has a lengthy bottom wick.
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.