Decentralized finance (DeFi) and non-fungible tokens (NFT) are currently the most popular cases in the cryptocurrency industry.
Chiliz, a blockchain network created by the Socios fan engagement platform, which has been partnering with major football teams one after the other, is one of the names that has gained popularity recently. The project enables fans to support their teams by voting. The people who buy the fan tokens both support their teams and have a say in various voting.
According to the project website, all fan tokens are generated on the Chiliz blockchain through smart contracts. The platform currently offers fan tokens for leading sports clubs including FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray and Atletico Madrid.
Token launch sparked a strong rally
On March 2, the CHZ price skyrocketed when CEO Alexandre Dreyfus announced that the project would set aside $ 50 million to expand its operations in the US and to start working with local leagues and sports franchises.
According to data from Cointelegraph Markets and TradingView, the price of Chiliz (CHZ) rose 760 percent last month. Traded at $ 0.022 on February 8, the token rose to an all-time high of $ 0.189 on March 8. The 24-hour trading volume of CHZ tokens also broke a record at $ 1.92 billion.
Daily chart of CHZ / USDT parity. Source: TradingView
The 20-day exponential moving average (EMA) ($ 0.104808) of the CHZ price, which had a very strong rise, turned its direction further north. At the boundaries of the overbought zone with the relative strength index (RSI) 94. For the market, which seems completely under the control of the bulls, these two data increase the likelihood of a correction in the short term.
It can be interpreted as a healthy move if the CHZ / USD pair, which rebounded from psychological resistance at $ 0.3, fell to $ 0.193077 where the 38.2% Fibonacci retracement level was calculated if sales increased. The price bouncing up from this point will likely push the 0.3 resistance once again. In the bullish scenario, the rally could go up to $ 0.470334.
If the opposite holds true and a deeper drop is observed, this time $ 0.127644, where the 61.8% Fibonacci retracement level is critical for the price of CHZ, will become critical. If this support is not held, the uptrend may be interrupted.
Regardless of technical analysis, Chiliz continues Formula 1 negotiations. If the name of the CHZ token is associated with one of the F1 teams, further growth in price is possible.
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