Chiliz recovers towards pre-May 2021 crash levels on PSG’s Messi recruit

Chiliz CHZ Messi PSG
Image from SwissBorg.com
  • Chiliz reaps gains as Paris St Gerain recruits Leo Messi, welcoming him with a payment that included a “significant” helping of PSG fan-tokens.
  • CHZ governance token gains 35 percent in the wake of the announcement, approaching the pre-crash value in May 2021.
  • Chiliz expands its fan token base with renowned football clubs.

YEREVAN (CoinChapter.com) – CHZ, the governance token for Chiliz, a fintech provider for sports and entertainment atop Socios.com, a sports management platform, surged 35 percent from its August close of $0.341.

The cryptocurrency’s explosive rally surfaced after French football club Paris Saint-German recruited Leonel Messi, a renowned Argentinian football player leaving FC Barcelona. The club offered to pay a portion of Messi’s multi-million euro package in the form of their fan token PSG via the Chiliz platform.

Sources report, the “welcome package” constituted approximately 25-30 million euros. The Qatari-owned PSG club did not disclose the exact sum of the tokens’ share in the payment. However, the sum was “significant,” according to the club representatives.

The event proved optimistic for the PSG fan token and the platform itself. Subsequently, the price of the CHZ governance token rocketed, albeit correcting hours later on profit-taking sentiment.

Also read: Fan token PSG rallies on Lionel Messi’s Paris Saint-Germain recruitment.

Bullish rally

In the wake of the star footballer’s transfer, the CHZ/USD pair abandoned the last consolidation phase. As a result, the exchange rate jumped to 0.40 before sliding down to 0.37 ahead of the London session Friday.

The fan-driven digital asset powered through significant resistance at 0.30 and 0.34 on its way to pre-May crash levels.

Chiliz (CHZ) back on the bull thanks to Messi's welcoma package from PSG. Source: CHZUSD on TradingView.com
Chiliz (CHZ) is back on the bull, thanks to Messi’s welcome package from PSG. Source: CHZUSD on TradingView.com

As CHZ reversed losses after the mid-May crash, the bullish price affected the relative strength index (RSI: purple graph). On the chart above, the RSI clocked at 79, far beyond the range limit of 70. Whenever the indicator leaves the 30-70 zone in an uptrend, the digital asset will likely experience a downward correction.

In detail, the RSI reflects the trader’s attitude towards the coin’s moment. For example, when the indicator climbs too high, the traders might consider the asset overbought and pull their funds to secure the gains, sending the price down.

Despite the possible correction, the overall popularity grew with new fan tokens underway.

Also read: Chiliz bucks the weekend bearish trend by surging 15% intraday; what’s next for CHZ?

Chiliz fan base grows

The fan token platform continues to grow in popularity bringing new sports clubs and teams into the fold. The platform announced a new coin Fan Token Offering (FNT) launch at 3 p.m. on Friday. The club joining the fan token craze is the Spanish Atletico.

On Thursday, the platform launched another FTO for London-based Arsenal. Later, the FTO was sold out for $2 million shortly after. Chiliz also asserted that the FC Barcelona token price is still doing great, despite Messi’s departure, and noted that it’d been a great week for crypto in sports.

Also read: Bitcoin whales hold 25% of the BTC supply as other entities keep accumulating.

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