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There are two significant events simultaneously happening in the world. On the one hand, the entire cryptocurrency market is down, and on the other hand, the FIFA world cup 2022 is drawing close. As a result of these intersecting events, the Chiliz price has soared by 11%. Does that mean it is time to invest in this cryptocurrency right now?
Why is the Chiliz Price Increasing?
The current price chart for Chiliz on CoinMarketCap shows that the value of the token has increased in the past seven days. Not only that, while most altcoins in round 2 of this bear market were hitting their 2022 bear bottoms, Chiliz was largely unaffected.
The month-low Chiliz reached was $0.14, but it quickly bounced back to reach $0.22. A small retrace later, Chiliz is back on track to achieve its November high.
It doesn’t take rocket science to understand why the Chiliz price is increasing – it is all about the world cup.
The world’s biggest sporting event is about to take place, and fans want to be as close to their team as possible, and Chiliz facilitates that.
Created by a Malta-based fintech provider of the same name, Chiliz is a sports token that operates on the platform known as Socios.
Holding Chiliz and other fan tokens allows the fans of particular teams to come together and vote in a manner similar to a DAO. Fans can influence the messages on the armbands of the players, and entry music, to name a few.
This unique attribute has led to Chiliz creating a bullish sentiment even though the entire market is bearish.
Chiliz Price Prediction: Will This Fan Token Go Higher?
One of the factors that investors must know is that Chiliz won’t perform in a fashion similar to other crypto assets. It is a fan token and holds value proportional to the utilities it provides. Football clubs are moving forward to create better fan experiences, likely increasing this token’s price.
However, it would be foolhardy to assume that Chiliz is completely untouched by the current bearish sentiment in the crypto space.
The daily candles show that the price of Chiliz has been increasing almost linearly since 20th October in anticipation of the upcoming world cup. However, the value took a downturn after the FTX debacle, and Chiliz hit multiple lows. Thankfully, the price soon found its footing once again, and from the looks of it, an uptrend is forming.
That said, non-sport fans are still apprehensive about this cryptocurrency. Upon scrolling down the CoinMarketCap’s page for Chiliz, we found that there are many who still have a bearish sentiment towards this token, with some investors saying that the “Socios app is now working and Chiliz is useless during the world cup”.
Going further down the comment section, we see several comments echoing that sentiment and warning against this perceived “bull trap”.
Does that mean you should buy Chiliz?
Well, the token is floating dangerously close to the overbought zone. However, for true fans that don’t have any intention to sell this asset right now, it might be a good investment.
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