In the run-up to the World Cup, sports utility cryptocurrency Chiliz (CHZ) was among some of the most bullish assets despite the widespread market correction. However, as the global tournament progresses, CHZ is on a bearish momentum.
By press time, Chiliz was trading at $0.17. The value represents a drop of about 32% from the November 20 value of $0.26.
Furthermore, CHZ has been hit with increased selling pressure, recording outflows of about $500 million between November 20 and December 2. As of December 2, the asset’s market cap stood at $1.52 billion.
Why Chiliz is correcting
After the highs ahead of the World Cup, CHZ has suffered a downtrend as fans’ interest seemed to have waned. At the same time, the token’s performance is stumbling, correcting in line with the general market.
The current Chiliz price trajectory can be attributed to the possibility of investors taking out profits after the growth was deemed as a “buy the rumour, sell the news” event.
Indeed, the Chiliz rally saw the asset record increase interest on social media platforms, helping drive the value. To build on the recent popularity, the Chiliz team is also focusing on improving the network to give the asset more viability. In this line, the network is set to unveil the Chiliz 2.0 upgrade.
The upgrade aims to establish a Web3 ecosystem focused on the sports and entertainment industry. Additionally, it will create an ecosystem where stakers can access global brands and use an already existing partner network of sports entities.
Notably, the upgrade was touted to increase interest in Chiliz, but interest seems subdued.
Chilz price analysis
Chiliz has lost critical support levels after being impacted by the general crypto market correction led by the FTX exchange collapse debacle.
In the meantime, CHZ is looking to regain the $0.20 level since the position is a critical support position. However, if the token slides further to below $0.15, it will need increased buying pressure to target new highs.
Furthermore, the CHZ technical analysis remains bearish, with a summary recommending ‘sell’ at 14 while moving averages are gauging for a ‘strong sell’ at 13 on the daily gauges. Elsewhere, the CHZ oscillators are ‘neutral’ at eight.
With the Chiliz network working towards expansions, fans of the platform can look beyond the World Cup for triggers of another price rally.
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