Chiliz (CHZ) Price Nosedives Indicating A Strong Bearish Sentiment

Chiliz(CHZ) is trading in the red today, down by over 4% in the last 24 hours. This trend broadly reflects the global crypto market cap, down by 0.57% in 24 hours. 

However, despite the price drop, Chiliz’s trading volume is up by 39% at press time, which could influence its price action soon.

CHZ traded at $0.1011 on January 1, 2023, before it moved to $0.1202 on January 10. Since then, it has experienced extreme price volatility, peaking at $0.1577 on February 8 for the first time in 2023. However, the bears have prevailed on its price, returning it to $0.1075 today.

CHZ is in a downtrend momentum, forming a fourth consecutive red candle. It has dropped below its 50-day and 200-day Simple Moving Averages (SMA), a bearish sentiment for the short and long term.

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Also, its Relative Strength Index (RSI) is 28.15, firmly in the oversold region below 30. It implies that the bears are in control of their price movement. The RSI is still moving downwards, suggesting further price decline for the asset in the short term. However, since the asset is oversold, a retracement is likely if it can rally from its closest support level.

CHZ’s Moving Average Convergence/Divergence (MACD) is below its signal line and showing negative values. It also reflects the prevalent bearish trend. Also, the histogram bars are at full strength and bearish.

CHZ is rapidly approaching the $0.108 support level and a drop below this will send the asset’s price into free fall to record lower lows.

The bears at the $0.11685719 resistance level are active and resisting a rally for the asset. But CHZ is already in the oversold region and will probably reach a point of consolidation soon. 

Chiliz Chain is a layer-1 blockchain compatible with the Ethereum Virtual Machine. Chiliz aims to become the hub for leading sports brands in Web3. Socios.com is the existing Chiliz sports network with a growing community.

Who's securing our network?

Jump Crypto @jump_, Paribu @ParibuCom, and Meria @Meria_Finance have chosen to help secure the #ChilizChain and have committed to building a fair environment to help sports thrive in the web3 landscape.#ChilizChain $CHZ pic.twitter.com/ZrqYBOqJFh

— Chiliz ($CHZ) – Powering Socios.com (@Chiliz) May 10, 2023

Also, Chiliz hopes to partner with other sports brands and unite fans and communities using fan tokens and Web3 technology. 

Chiliz Labs will support sports blockchain projects hoping to develop on the blockchain. According to their mission, they hope to unveil a wide range of Web3 sports projects, AI-based content, 3D digital sports gear, and NFT tickets. 

These activities will likely help the token’s price action since Web3, sports, AI, and NFTs are areas of interest in the crypto community.

Featured image from Pixabay and chart from Tradingview.com