The number one sports altcoin, Chiliz has been chilling with impressive gains this past week. Although it has traded in the red zone for most of today, CHZ still holds over 30% gains from the last seven days. Its continued shine comes as the FIFA world cup draws closer. As FIFA’s official blockchain partner, there’s bound to be massive activity in the ecosystem throughout the tournament.
The top-50 crypto has also enjoyed massive mentions on Twitter and other social media this period. There’s a potential that CHZ is heading for a breakout. However, the charts show that it has reached the overbought zone. Can it continue to shine till the end of November?
CHZ Charts Suggests Bullish Future
CHZ’s price rose by more than 30% in only one week. It started at a low of $0.216 on October 31 to an intraday high of $0.295 on November 7. The price increase came after forming a bullish pattern known as the inverse head and shoulder (IH&S).
In more detail, the inverted head-and-shoulders pattern consists of three consecutive bottoms, with the head and shoulders in the middle. A shared Neckline links the three dips together. The three dips and subsequent retracement to the neckline are formed as the pattern develops.
Furthermore, the pattern forecasts a rise if the token penetrates the upper limit. CHZ bulls may see gains of up to 210%, resulting in a CHZ/USD exchange rate of $0.901. As of late, CHZ has been trading close to the pattern’s neckline. If CHZ’s price breaks out and stays above the trendline, it should attract buyers and lead to more price gains.
Fan Tokens Help CHZ Surge As World Cup Approaches
The forthcoming FIFA World Cup may be inspiring positive sentiment in the Chiliz price. The platform positions itself as a fan token, with sports lovers as its target audience. Therefore, CHZ has enjoyed massive surges partly by anticipation of the event, which kicks off soon. The CHZ token allows users to engage more actively in the day-to-day operations of their favourite sports teams. This, in turn, generates additional revenue streams for the businesses that sponsor the teams. Therefore, even if CHZ drops owing to an overbought RSI, the token still has strong positive momentum because of the World Cup.
Additionally, numerous national football teams competing in the highly anticipated tournament have launched their football fan tokens. This includes Spain National Football Team Fan Token (SNFT), Portugal National Team Fan Token (POR), and Argentine Football Association Fan Token (ARG).
All these tokens are made possible thanks to Socios, the platform for football fan tokens powered by Chiliz (CHZ). However, 32 nations are competing for the championship in Doha this year. As a result, the potential of the football tokens held by the national teams is heavily dependent on two factors. The first is how well the teams do on the field, and the second is the support they receive from their die-hard fans.
Featured image from Pixabay and chart from TradingView.com