Chiliz Price Plunges 14%, Traders Warn of Potential Additional Downside

Chiliz's recent price drop has left traders wondering if it's a sign of a deeper trend reset or just another brutal shakeout. The cryptocurrency's 14% plunge below a critical support structure has sparked concerns that the correction may not be over yet.

The market structure is weakening, and trader conviction is fading, which could lead to further price declines. Derivatives activity suggests traders are closing their exposure rather than positioning for a rebound, adding to the bearish sentiment.

The breakdown below the symmetrical triangle formation has invalidated what many traders saw as a recovery base, leaving bulls with a tough task ahead. The focus now shifts to the $0.028-$0.030 support region, which could lead to an additional 20-25% downside if bearish momentum continues.