Dsegh, Armenia (CoinChapter.com) – CHZ, the native token of the sports-centric crypto project Chiliz, partially pared its weekly 18% value loss and advanced 8% in the previous 48 hours, reaching $0.125 ahead of the New York session on April 25.
However, the bulls might not have much time to celebrate as the coin eyes a 10% drop before Chiliz goes public on May 10. Here are several reasons for the short-term bearish prognoses.
Chiliz token price could drop 10%
According to the CHZ/USD daily chart, the token mainly traded within a consolidation channel since Dec 2022. As a result, CHZ retested the channel’s resistance on April 19, and the mentioned weekly 18% loss followed. Moreover, the token retested its 20-day and 50-day exponential moving averages as resistance on April 25, raising bearish concerns.
Additionally, the CHZ chart printed a bearish relative strength index (RSI) divergence, which occurs when the asset’s RSI veers from the price action. In detail, while the price established higher lows month-to-date, as shown on the chart, the RSI printed lower lows, hinting at a possible bias reversal in the upcoming sessions.
The declining trading volumes since April 8 back the outlook, suggesting lowering interest from traders. If the forecast is correct, CHZ could lose 10% of its value by May and retest the support at $0.11.Will the May 10 event trump the bullish outlook?
Also read: Chiliz blockchain public release in 6 weeks – will a CHZ really follow?
Chiliz goes public on May 10
On March 28, Chiliz announced the public release of its blockchain, expected on May 10. Thus, developers and projects will be able to start building on the Chiliz layer-one, launched on Feb 8, 2023.
The project’s chief executive Alexandre Dreyfus has previously noted the importance of attracting developers to Chilliz. “We have to onboard developers and companies because we already have over 2 million users and 100 sports brands,” he said.
42 is the answer to everything (as per “The Hitchhiker’s Guide to the Galaxy”). It is also the number of days before the official Chiliz launch of the main net. The 10th of May is now the date set in our calendars and hopefully in yours.
commented the CEO in a tweet.
The open blockchain serves Chiliz’s ultimate goal of creating an “ecosystem with fans of different sports teams and disciplines,” said Dreyfus. “We hope that in the future, most validators will be the sports teams themselves,” he added.
Also read: BNB Price Eyes Bullish Break While Bitcoin and Ethereum Struggle
