The Chiliz price is crawling back after it crashed by more than 15% on Thursday. The CHZ token is trading at $0.4395, which is a few points below this week’s low of $0.3680. According to CoinGecko, it has a total market capitalization of more than $2.3 billion, making it the 73rd biggest cryptocurrency in the world.
What is Chiliz and why did it fall?
Chiliz is a blockchain project that is trying to disrupt one of the biggest industries in the world. It is in the sports and betting industries that are seeing a robust growth recently. The platform owns Socios.com, which has partnered with leading clubs like Barcelona, Manchester City, Paris st Germain, and AC Milan among others. Socios is powered using the Chiliz blockchain project.
CHZ is the native token for the ecosystem. The developers have even created a trading platform where people can buy and sell the CHZ token in a relatively simple way. It is possible to buy the tokens in other exchanges as well.
It is an ERC 20 and BEP2 token that has a total supply of more than 8 billion units. 34% of these tokens were sold in a token sale while 3% of them were reserved to the advisory board. The rest of the tokens were allocated to the userbase reserve, strategic acquisitions, and seed investors.
The CHZ price has risen in the past few months because of the rising growth of the Chiliz ecosystem. For one, the number of clubs participating in the industry has grown rapidly in the past few months. Most importantly, the number of people using Socios has also been on an upward trend.
However, this week, the coin has lost ground because of the overall weakness of cryptocurrencies. Indeed, leading coins like Bitcoin, Ethereum, and Solana have all crashed this week.
The daily chart shows that the CHZ price has moved sideways in the past few weeks. The price has remained between the support and resistance levels at $0.1786 and $0.9723. The coin has also moved above the ascending trendline that is shown in red. It has also moved slightly above the 25-day moving average.
Therefore, for now, the Chiliz price will likely remain in the current range until the crypto industry stabilizes. In the long-term, however, a bullish breakout cannot be ruled out.