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Why Chiliz Is Losing Heat Despite World Cup Pomp; CHZ Down Over 30%

Since the beginning of the 2022 2FIFA World Cup, the value of Chiliz native token has plummeted.

Due to the discovery of various issues, the sporting event has been met with some controversies. Not to mention that just a week before the World Cup’s start, the collapse of the infamous FTX exchange shook the crypto world. But then, this is not the main point here.

Despite some promising advances off-chain, Chiliz continues to struggle. The token is down more than 30% in the last two weeks.

There is a lot of bearish evidence in the technicals and stats. If the price drops below $0.1451, short selling becomes an option.

This added strain to the already overburdened Chiliz ecosystem, which has had trouble drawing in investors and sports fans despite the testnet release of its Chiliz 2.0 update. However, CoinGecko reported a 1.3% price increase just lately.

When Will CHZ Get Its Zing Back?

On a green candlestick, the current price of CHZ is $0.1677. An oversold Relative Strength Index (RSI) value may help to clarify the recent increase in the token’s price.

However, the market is currently embroiled in a battle between bulls and bears, with prices remaining within the $0.3085-$0.1451 range that prevailed prior to the FTX brouhaha.

The market remains slightly mired in the distribution phase, with support and resistance being momentarily breached and reclaimed.

This has been true since the month of August. The situation may be deteriorating as CryptoQuant observes an increase in exchange reserves for the coin.

According to Messari, the volatility of the asset has been 2.13, indicating that it has been quite shaky. Having settled at -1.23, the returns relative to this volatility likewise exhibit extremely bearish characteristics.

Will There Be A Reversal?

Nonetheless, the MACD indicator indicates that a reversal is imminent. This may suggest a reversal due to the RSI being oversold. However, because exchange reserves are so high, any positive reversal would be met with a tremendous negative force.

A certain bearish breach of the $0.1451 support could cause the current market structure of distribution to collapse. A breach of this support might send the price to the 78.60 Fibonacci level.

A breakdown below this level could send the price to $0.0791. As the market recovers from the correction triggered by the FTX crash, CHZ should be able to ride this wave and emerge in a better shape.

CHZ total market cap at $1.02 billion on the daily chart | Featured image: DailyCoin, Chart: TradingView.com

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The Soccer Club That’s Offering Ownership Via NFT

Thought you’ve seen it all in NFTs? Think again. Sure, we’ve seen digital art collectibles, even some with tangible assets intertwined. Recently, we’ve even seen NFTs including things like patents and Nobel Prize-winning invention documentation. Today, Liga MX franchise Club Necaxa announced their intent to offer something especially unique via NFT – team ownership.

Bidding Is Big: Club Necaxa

The soccer club is fresh off the heels of selling nearly half the franchise; the recent sale valued the franchise in the “low nine figures” according to a Sportico report. The sale was also noteworthy in that it was US investors first venture into what’s described as “the NFL of Mexico”. Real estate investor Al Tylis and DC United executive Sam Porter spearheaded that effort. Major capital investors from NBA players like Shawn Marion, Richard Hamilton, and Victor Oladipo, along with other names in sport such as Justin Verlander and Mesut Ozil joined in with the ownership group as well.

With regards to the purchase, Tylis said that “sports are effectively media properties, and I saw something a while back that I found relatively shocking: In the U.S. alone, more people watch Liga MX than Major League Soccer and Premiere League combined – it was just an unbelievable number to me.”

Tylis has recognized the NFT ‘buzz’ as well, acknowledging that the attention in such a unique NFT listing certainly was part of the draw. The decision was “absolutely a way to generate interest” in Necaxa and noted that they are “adding something unique, and which has never been done before” in implementing an NFT with club ownership.

Related Reading | Top Stars Line Up To Support Environmentally Friendly NFT Platform OneOf

 

OpenSea runs on the Ethereum network, and will be host to Necaxa's initial club token sale. | Source: ETH-USD on TradingView.com

The Club Necaxa Token

The one-of-one token is set to go up for auction in the days to come, and will run until June 18th. The franchise has said that it will carry permanent equity, not subject to dilution or future capital calls. The 1% ownership will always be 1%. The token will be listed on OpenSea and will remain transferrable after initial sale. Blockchain consultancy B9Labs worked with the franchise in launching the token, which is expected to launch with a $1.3M starting ask price.

Beyond franchise ownership, the club’s token will also allow the owner access to club facilities, tickets for both home and away games, and any championship rings that the club wins.

While many soccer clubs have been looking at, or engaging with, ‘fan tokens’ – often launched by companies like Socios, Necaxa is turning the dial up a notch here. Digital presence, meet tangible ownership.

Related Reading | Marsis: Creating New Frontiers In NFTs Space

Featured image from Pixabay, Charts from TradingView.com