Chiliz price analysis: A rally above $0.30 is possible
The FIFA World Cup, one of the largest sporting events in the world, will be held in Qatar from 20 November to 18 December 2022. Football fans wait for this event as it is held only once in four years. Socios is a fan engagement platform with several perks for the fans and it uses the Chiliz blockchain and the CHZ as its platform currency.
Traders are hoping that the World Cup could increase the demand for fan tokens. That is one of the reasons for the strong recovery in the price of CHZ after the recent correction triggered by the crisis at the FTX cryptocurrency exchange. The CHZ token is attempting to climb back above $0.25 as of 18 November 2022.
Other positive news that could have boosted buying interest in CHZ is that Chiliz has unveiled plans to compensate retail traders who are affected by the collapse of the FTX cryptocurrency exchange.
Alexandre Dreyfus, CEO of Chiliz and Socios, tweeted on 13 November that Chiliz will allocate 38 million CHZ tokens to give up to $10,000 to the affected retail traders of FTX who owned CHZ on that platform before it stopped withdrawals. This proposal is expected to take a few weeks, after receiving the legal review and approval of the liquidator.
The 38M $CHZ is the amount on-chain that was on FTX exchange in their wallet up to last week. This initiative will be only for individual users and not for institutions.
— Alexandre Dreyfus (@alex_dreyfus) November 13, 2022
This is still subject to complete legal review and approval from liquidator to provide us the list of users.
Could Chiliz go up further or will traders book profits as the World Cup begins? Read the CHZ price analysis to find out.
Chiliz price technical analysis: Weekly chart
Chiliz CHZ weekly chart for 18 November 2022CHZ’s price has recovered sharply from its June lows and has formed an inverse head and shoulders pattern which will complete on a break and close above the neckline.
The moving averages are on the verge of a bullish crossover and the relative strength index (RSI) is in positive territory, indicating advantage to buyers.
If bulls drive and sustain the price above the neckline of the pattern, the CHZ/USD pair could start a new uptrend. The pair could then attempt a rally toward the pattern target of $0.54.
Contrary to this assumption, if the price turns down from the neckline, it will suggest that the bears are aggressively defending this level. The pair could then decline to the strong support at $0.14.
Chiliz price technical analysis: Daily chart
Chiliz CHZ daily chart for 18 November 2022Chiliz’s price has formed a broadening formation in the past few days. This suggests indecision among the bulls and the bears about the next directional move. Traders are buying near the support line of the pattern but are booking profits near the resistance line.
The 20-day exponential moving average (EMA) is trying to turn up and the RSI is just above the midpoint. This indicates that the bulls have a slight edge and the pair could attempt a rally to the resistance line. This level could again tempt traders to book profits.
If the price turns down from the resistance line, the pair could extend its stay inside the formation for a few more days.
Alternatively, if bulls thrust the price above the resistance line, it will suggest that buyers have absorbed the supply and that could signal the start of a new uptrend. There is a minor resistance at $0.34 but if bulls clear this hurdle, the pair could rally to $0.46.
Chiliz: Buy or sell this week?
Chiliz has risen above the moving averages and could rally to $0.30. If bulls push and sustain the price above this resistance, Chiliz’s price analysis suggests a rally to $0.34 and thereafter to $0.48. On the other hand, if bulls fail to push the price above $0.30, the pair could drop to $0.22.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.
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