What is Chiliz Chain?
LUCKNOW (CoinChapter.com) – Chiliz Chain is a Layer-1 Proof of Staked Authority (PoSA) blockchain specifically designed for the sports and entertainment industry. It allows fans to interact with their favorite teams and sports. It uses blockchain technology to create a decentralized ecosystem that fosters fan engagement through various blockchain-based applications.
Key Features of Chiliz Chain
Chiliz Chain is compatible with the Ethereum Virtual Machine (EVM), making it easier for developers familiar with Ethereum to build on it. The chain operates under a PoSA consensus mechanism, managed by a network of 11 validators. These validators include prominent entities like Animoca Brands and Paris Saint Germain.
Fan Tokens and NFTs are central to Chiliz Chain. These digital assets allow fans to engage with their favorite teams. They can be used for voting in club decisions, accessing exclusive content, and more.
One of the significant recent developments is the launch of Olefoot, a tap-to-earn fantasy football game on Chiliz Chain. This game allows users to create teams with NFTs and compete for prizes.
Source: X
Additionally, Chiliz has partnered with various sports teams and organizations, such as the BSC Young Boys football club, to migrate their NFT ecosystems to Chiliz Chain.
Related Post: Chiliz Hard Fork Fails To Impress Traders, CHZ Continues Downtrend
Is Chiliz Chain Bullish for CHZ Prices?
The continuous onboarding of new projects, games, and partnerships within the sports industry is likely to drive higher demand for CHZ tokens. As more fans and developers engage with the Chiliz ecosystem, the utility of CHZ increases, potentially driving up its value.
With substantial investments into Chiliz Labs and developer initiatives, there is a strong push to expand the ecosystem. This includes hackathons and partnerships aimed at inspiring new dApps and platforms, which can further enhance the utility of the CHZ token and attract more users.
The positioning of Chiliz Chain in the sports and entertainment industry sets it apart from other blockchain projects. Its focus on fan engagement and the sports economy could attract a dedicated user base, leading to positive market sentiment and increased speculative interest in CHZ.
How Is Chiliz Is Performing Now?
The Chiliz (CHZ) shows a consistent downward trend since its peak earlier this year. Currently, CHZ is trading below all major Exponential Moving Averages (EMAs). When the price is below all moving averages, it generally indicates a bearish trend.
Chiliz (CHZ) Daily Price Chart. Source: TradingView
The Relative Strength Index (RSI) is at 29.72, placing it in the oversold territory. An RSI below 30 usually suggests that the asset is undervalued and might be due for a bounce or reversal. However, an asset can remain in the oversold territory for an extended period during a strong downtrend.
The price of CHZ has declined significantly from its recent high of around $0.16 and is currently trading at approximately $0.053. This price level is a critical support zone, as it has previously shown to attract buyers.
Given the bearish trend and oversold RSI, there are two potential scenarios. In the short term, the RSI suggests the possibility of a bounce back to the 20-day EMA around $0.061. If the price manages to break this level, it could head towards the 50-day EMA at $0.072. However, breaking these resistance levels would require strong buying momentum. On the other hand, if the bearish momentum continues, CHZ might test lower support levels around $0.045. If this support breaks, it could lead to further declines.
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