- Chiliz price has made a strong recovery in the past few days.
- Fan tokens market cap has dropped to just $182 million.
- Chiliz has formed an ascending triangle pattern.
The Chiliz price is hovering near the all-time low as concerns about cryptocurrencies and fan tokens remain. CHZ is trading at $0.1188, which is about 50% above the lowest level last week. The coin has a market cap of over $640 million, making it the 91st biggest coin in the world.
Fan tokens crash
Chiliz is a leading blockchain project that is attempting to disrupt the sports industry. It is a well-known brand that has helps sports launch their fan tokens.
A fan token is a cryptocurrency that sports teams create in order to deepen their relationships with their followers and fans. Some of the top teams that have launched their fan tokens include AC Milan, Manchester City, Alpine, and FC Barcelona among others.
Fans who buy fan tokens have a say on some aspects of the clubs. However, a closer look shows that many of these perks are mostly not worth it. For example, these fan token holders cannot vote on who the sports teams will sign or not.
Learn more about how to buy Chiliz.
While big teams have launched their fan tokens, a closer look shows that they have not performed well. For example, according to Fan Market Cap, there are now 63 fan tokens that have a market cap of just $182 million. Manchester City’s fan tokens has a market cap of just $18 million while Paris Saint-Germain has a market cap of just $16.4 billion.
Further, while Socios has inked deals with many clubs and celebrities like Lionel Messi, there are signs that its usage has started to drop. According to SimilarWeb, the website was visited by 221k in March, which was lower than the previous month’s 259k.
Chiliz price prediction
On the 4H chart, we see that the Chiliz price has made a strong bullish trend in the past few days. A closer look shows that the coin has formed what looks like an ascending triangle pattern. It is also slightly below the 50-day moving average. At the same time, the Relative Strength Index (RSI) has moved to the neutral level of 50.
Therefore, there is a likelihood that the coin will have a bullish breakout in the near term. That’s because the ascending triangle pattern is usually a bullish sign. If this happens, the next key resistance level to watch will be at $0.16.
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