Chiliz Bulls Remain Watchful As CHZ Feeling Bearish Impulse

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Since a prospective trend reversal appeared on the charts, Chiliz bulls have been hesitating. The Scoville Testnetโ€™s fourth and final phase, Cayenne, was released by the Chiliz team on October 24. A new developerโ€™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 networkโ€™s native coin, CHZ, is experiencing strong bearish momentum as of thisย writing, despite encouraging indicators of growth for the network and the token.

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 Arenโ€™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 Bitcoinโ€™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 bullsโ€™ 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:

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

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