Chiliz price is at a major risk as fan tokens crash
The Chiliz price has been under intense pressure in the past few months as investors worry about the future of fan token offerings (FTOs). The CHZ price is trading at $0.2455, which is close to its lowest level since September last year.
Fan tokens crash
Chiliz is one of the biggest blockchain platforms in the world. According to CoinGecko, CHZ has a total market capitalization of over $1.3 billion. This makes it the 90th biggest cryptocurrency in the world. At its peak, Chiliz was among the top 40 biggest coins.
The Chiliz price has dropped by over 75% from its highest level in 2021. This decline is mostly because of the performance of fan tokens.
For starters, fan tokens are tokens offered by sports teams as a way of boosting their engagements with their fans. Today, some of the biggest clubs in the world have issued their tokens. The most popular teams with tokens include Paris Saint Germain, Lazio, Manchester United, Barcelona, and Inter Milan, among others.
According to Fan Market Cap, there are 58 fan tokens that have a combined market capitalization of $370 million.
Chiliz is the company behind most of these fan tokens. The firm provides teams with the technology that they need to build their fan tokens. It has partnered with the biggest teams in the world.
Additionally, Chiliz runs Socios.com, a leading blockchain platform that enables token holders to trade them. It is the biggest app of its kind.
The Chiliz price does well when fan tokens do well. Unfortunately, the past few months have been challenging for these tokens.
For example, the FC Barcelona token is trading at an all-time low after falling by over 70% from its all-time high. It has a market cap of just $26 million. The same trend can be seen in all tokens of other teams like PSG, Lazio, and Manchester.
Chiliz price prediction
The daily chart shows that the Chiliz price has been in a strong bearish trend in the past few months. The coin is trading at $0.2462, where it has struggled to move below several times before. It has moved below the 25-day and 50-day moving averages. A closer look at the coin shows that it has formed a head and shoulders pattern.
Therefore, there is a likelihood that the CHZ price will have a bearish breakout in the near term. If this happens, the next key support level to watch will be at $0.20.