Why the CHZ price hike failed to materialize during the FIFA World Cup

Chiliz (CHZ) price declined since Nov 7 and broke the important horizontal and diagonal support levels.

The 2022 FIFA World Cup ends on 18 December. The price of CHZ actually dropped by more than 50% during the World Cup, even though the Chiliz blockchain and Socios platform is home to various fan tokens and was expected to get a boost during the period. ,

Chili price breaks key support

Chile price climbed along an ascending support line since June 18. The upward movement reached a high of $0.297 on 7 November. However, CHZ price subsequently declined sharply and broke above the support line on 8 December.

The breakdown catalyzed another downside move that took Chiliz below the $0.133 horizontal support area. In the case of a boom, the field would potentially provide resistance.

Technical indicators do not indicate any bullish momentum. The daily RSI is declining, below 50 and has not generated any bullish divergence. As a result, the most likely Chilean price forecast is a decline towards the $0.088 horizontal support area. Annual lows form this support zone.

Conversely, a retest of the $0.133 horizontal zone will negate this bearish outlook.

Chile (CHZ) support on the rise in value
CHZ/USDT Daily Chart. Source: TradingView

Short-term rally before another decline

Despite the bearish outlook from the daily time frame, the short-term four-hour chart offers hope for an upside move. The four-hours RSI has generated a substantial bullish divergence (green line), which could catalyze an upward move in the next 24-hours.

If this happens, it could lead Chiliz price towards the short-term descending resistance line at $0.12. Therefore, there will be considerable resistance formed by the resistance line between $0.120 and $0.133 and the horizontal resistance area at $0.133 mentioned earlier.

Short-Term Chili (CHZ) Rates
CHZ/USDT six hour chart. Source: TradingView

To conclude, while there could be a short-term rally, the CHZ price forecast would most likely indicate an eventual decline towards $0.088. A break out of the short-term descending resistance line and a retest of the $0.133 area will invalidate this bearish speculation.

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