The Chiliz (CHZ) price has decreased since Nov. 7 and broke down from crucial horizontal and diagonal support levels.
The 2022 FIFA World Cup ended on Dec. 18. Even though the Chiliz blockchain and Socios platform is home to various fan tokens and was expected to receive a boost throughout this period, the CHZ price actually decreased by more than 50% during the World Cup.
Chiliz Price Breaks Down From Crucial Support
The Chiliz price increased alongside an ascending support line since June 18. The upward movement led to a high of $0.297 on Nov. 7. However, the CHZ price fell sharply afterward and broke down from the support line on Dec. 8.
The breakdown catalyzed another downward movement which took Chiliz below the $0.133 horizontal support area. In case of a bounce, the area will likely provide resistance.
Technical indicators do not provide any bullish signs. The daily RSI is decreasing, is below 50 and has not generated any bullish divergence. As a result, the most likely Chiliz price forecast is a drop toward the $0.088 horizontal support area. The yearly lows create this support area.
Conversely, reclaiming the $0.133 horizontal area would negate this bearish outlook.
Short-Term Rally Before Another Drop
Despite the bearish outlook from the daily time frame, the short-term four-hour chart provides hope for a bounce. The four-hour RSI has generated a considerable amount of bullish divergence (green line), which could catalyze an upward movement over the next 24 hours.
If one occurs, it could take the Chiliz price to a short-term descending resistance line at $0.12. Therefore, there will be considerable resistance between $0.120 and $0.133, created by the resistance line and the previously outlined $0.133 horizontal resistance area.
To conclude, while a short-term rally could occur, the most likely CHZ price forecast suggests an eventual drop toward $0.088 will transpire. Breaking out from the short-term descending resistance line and reclaiming the $0.133 area would invalidate this bearish projection.
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Source: https://beincrypto.com/reason-chiliz-chz-price-failed-rally-during-fifa-world-cup/