The social mentions of Chiliz, the official token of the Socios fan club, have soared through the roof in the past few weeks. As observed, most of these social mentions were about the recent 90-day high the token managed to reach in late September.
According to the crypto and market insights tracker, LunarCrush, this is one of the most important indicators to consider before investing in any cryptocurrency.
As an explanation for this increase in social mentions, the upcoming FIFA World Cup may deserve some credit. Chiliz is, after all, a cryptocurrency with practical applications in the world of sports.
In a tweet from LunarCrush, the analytics platform states that an increase in social mentions often leads to an upswing in price and could indicate that it is time to buy. This social-mention uptick comes barely a month before the start of one of the world's biggest and most hyped sporting events.
Another crypto analytics platform, CryptoQuant, has also jumped into the discussion. They found that CHZ's foreign exchange reserves appear to have depleted by about 0.72% over the last few weeks.
This alone points to the fact that investors are now jumping on cryptocurrency by the hundreds. Investors have bought CHZ over this period and have kept it ever since may be an important indicator for further bullishness.
The outlook on the CHZ chart also shows a head and shoulders pattern in the process of forming. This may be an indicator of an upcoming trend reversal.
In the hourly timeframes, the price action of the CHZ token appears to be testing support around the $0.19 level.
Moreover, the money flow indicator is at -0.03, indicating that the bears are now losing their control over the market and may be overtaken by the bulls very soon.
The price action of CHZ appears to have bounced off the 0.618 key Fibonacci level after hitting a lower low this week. It is quite possible that the next semi-major resistance level the bulls have to worry about is the 0.236 Fibonacci level around $0.2341. A retest of this level would form the other side of the head and shoulders pattern on the CHZ daily timeframe.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)