Fan Token Linked Chiliz (CHZ) Leads the Way, with $0.2050 the Target

Key Insights:

• Chiliz (CHZ) leads the way through the early afternoon, with the broader market in the red.
• The start of the European football season has put fan tokens and Chiliz back on the map.
• Sport continues to demonstrate its immunity to the economic landscape, with technical indicators supporting a breakout from $0.20.

The 2022-2023 European football season is well and truly underway. Premier League Champions Manchester City and Arsenal have started in fine form, while Manchester United props up the bottom of the table, losing two games from two.

For Chiliz (CHZ), the anticipation of and the start of the 2022-23 season has driven CHZ support.

Network news updates have also driven CHZ demand. News of Socios.com investing $100 million to support Barcelona FC’s Web3 goals was the big August news. The Scoville testnet launch for Chiliz Chain 2.0 added further support.

Barcelona, Manchester City, and Paris Saint-Germain are amongst progressive international football clubs offering fan tokens and embracing web3.

Fan Tokens Under Socios Drive Crypto Investor Demand for Chiliz (CHZ)

Barca, Man City, and PSG form one of fifty fan tokens of international clubs under Socios. The fan tokens give holders a say in a club’s decision-making, rewards, and access to exclusive fan token holder promotions, games, chats, and a chance to become a superfan.

Socios fan tokens are on the Chiliz Chain (CHZ), a Proof-of-Authority Ethereum-based sidechain.

Other teams under Socios include the English Premier League’s Arsenal and Everton, Italian clubs Juventus, Inter Milan, and AC Milan, and the Brazilian and Argentine national football teams.

According to CoinGecko, PSG sits at the top of the fan-token table, with a market cap of $27.6 million. Man City ranks second, with Barca at number five. As we saw in the 2021-2022 season, club performance influences token performance.

Club performance, fan engagement, and fan sentiment towards club management remain the key drivers for the individual club tokens and Chiliz. As more football clubs and sporting disciplines target fan engagement, the outlook remains positive for CHZ. Other sporting disciplines targeting fans include tennis, car racing, and UFC fighting.

Chiliz (CHZ) Price Action

At the time of writing, CHZ was up 10.76% to $0.2007.

A choppy morning saw CHZ fall to a morning low of $0.1726 before rallying to an early afternoon high of $0.2029. CHZ broke through the First Major Resistance Level (R1) at $0.1944.

Technical Indicators

CHZ will need to hold above R1 and avoid the $0.1776 pivot to test resistance at $0.2050 and the Second Major Resistance Level (R2) at $0.2077.

Avoiding a fall through R1 will be the key through the early afternoon to support an extended rally.

An extended rally would test resistance at $0.2150 before any pullback. The Third Major Resistance Level sits at $0.2378.

A fall through R1 and the pivot would test the First Major Support Level (S1) at $0.1643. Barring another extended sell-off, CHZ should avoid sub-$0.16 levels and the Second Major Support Level at $0.1475.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. CHZ sits above the 50-day EMA at $0.1636.

This morning, the 50-day pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering positive price signals.

Avoiding the 50-day EMA ($0.1617) would support further upside, with the bulls targeting a return to $0.2050.