Crypto nugget: Chiliz (CHZ) at a standstill after a nice bull run – What now?
The past few weeks have been marked by altcoins who have known beautiful rises. However, the underlying trend of the market is bearish ; especially since yesterday afternoon, the market reacted harshly to the decline following the inflation figures. Today, let’s take a look at the active CHZ of the platform Chilliz. Having experienced a quite impressive increase, it seems relevant to look into it to understand its situation on different time scales. Without further ado, let’s head over to TradingView!
This analysis of CHZ is offered to you in collaboration with CryptoTrader™ and its algorithmic trading solution finally accessible to individuals.
Chiliz in a weekly uptrend
After hovering around $0.08 in June during the’significant drop that cryptocurrencies have known, the CHZ has gradually recovered. After evolving for a few weeks under a resistance zone at 0.11/0.113 dollars (light gray rectangle), the bullish breakout led to a powerful movement. The asset has rejoined the previous range in which he evolved between March 2021 and May 2022. However, he has no not completed to get rid of a key level to $0.24. Is this a sign of buyer exhaustion or a simple pause before resuming new heights?
For now, on a weekly scale, the trend is bullish. At the level of 0.172/0.175 there is a confluence of EMA as well as the 100 moving average (shown in blue). Theoretically it is a technical area that the CHZ must not lose in order to maintain the momentum in which it has been in recent weeks. For example, when you look at the trend reversal last November, the price failed to break up until last month. In March 2022, we saw a false break in the downtrend, which trapped many buyers before heading back lower.
Will the next few days be hectic?
When we move on a time scale, we find that the asset evolves globally between a local support at $0.183/$0.185 and an resistance at $0.219/0.222. Currently, the H4 trend is bearish with a loss of the pivot zone at $0.202. The current challenge is to determine where the CHZ will operate a breakout. On the daily scale, the EMA200 is approaching support, making it a relevant area not to lose. An acceptance of the price with a close below this zone could start a real bearish momentum. On the chart, you can find some annotations for the bearish scenario with levels to watch: $0.164 (lower limit of the previous weekly range), $0.154 and $0.141.
For a bullish rally, the first stage is of return to the pivot zone also using the EMA200 H4. If successful and the market backdrop is favourable, the CHZ will likely be able to push towards its resistance. Thereafter, it will be necessary to monitor the reaction of the price to see if it is rejected or if it operates a bullish breakout. If he manages to overcome the resistance, the bullish targets are located at 0.24, 0.265 and $0.284. These are technical levels where the price has reacted many times in the past.
How is Chiliz (CHZ) doing against Bitcoin?
Although The Merge is the center of attention, the Bitcoin managed to regain momentum and is gaining market dominance cryptocurrencies. It is interesting to watch the situation of the altcoin CHZ against the king of cryptocurrencies in order to determine the current balance of power. Notice that the CHZ is in a bullish trende in 3D and outperforms always bitcoin. If it does not lose the area it is on (former resistance) and retakes the MA100, we can expect the asset to return to its previous high.
In this framework, this will put CHZ in a strong position and favor a rise against the dollar if Bitcoin does not fall below $20,000. However, if the CHZ loses this key area, it will enter an underperformance phase and likely return to the black line depicted on the chart. This could hurt the asset’s position against the dollar if the price of Bitcoin declines.
Here we are at the end of this analysis. You can see that the CHZ is in its H4 range and is moving towards its support. We invite you to monitor its dynamic against Bitcoin to reinforce a bullish or bearish bias and consolidate your plan against the dollar. It is clear that if the CHZ is in difficulty against the king of cryptocurrencies and that the latter is set to fall, it will be difficult to maintain its support at 0.183. All the more, The Merge approaching fast, market will probably be volatile. Manage your risk well and monitor the levels identified throughout the analysis! Good luck to you in the financial markets!
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