Cryptocurrency

CHZ is poised for a breakout but the market could take another plunge

Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought of funding recommendation.

Chiliz [CHZ] has a market cap of $1.4 billion and is ranked thirty seventh on CoinMarketCap. The sports and entertainment token has made quite a few partnerships in the previous 12 months.

Its visibility and the upcoming FIFA World Cup could see a surge in demand for CHZ. On the charts, a bullish bias appeared warranted primarily based on technical evaluation. Can Chiliz surge above the $0.24 zone of resistance that the bulls have grappled with for a month?

CHZ- 3-Day Chart

Source: CHZ/USDT on TradingView

The three-day chart reveals the asset in a sturdy downtrend. Indeed, Chiliz had not crushed its earlier decrease excessive from November to June. Slowly, this started to shift as demand started to reach with pressure in July and August. In August, the worth broke above the decrease highs it set in May, and shifted the market construction to bullish.

A trendline resistance (yellow) from November was additionally damaged in the latest previous. At the time of writing, the $0.247 resistance stage was the goal for bulls to flip to help. If this may happen, another leg upward towards $0.33 could start to brew.

One factor to notice was that, at the same time as CHZ pushed greater, the Relative Strength Index (RSI) could fail to make a greater excessive. This bearish divergence (orange) if confirmed could precede a vital pullback for CHZ.

Rationale

Chiliz on the verge of a bullish breakout, can the World Cup hype help?

Source: CHZ/USDT on TradingView

The 12-hour chart confirmed that the demand has certainly been on the rise since late June. The On-Balance Volume (OBV) has made regular greater lows. At the time of writing, the RSI was additionally above the impartial 50 line to indicate sturdy bullish momentum. The previous month has additionally seen sturdy buying and selling quantity, exhibited by the excessive quantity bars. This confirmed bulls and bears skirmishing arduous in the $0.16-$0.24 area.

The two highlighted cyan bins have served as help and resistance belts over the previous month. A protracted-term investor anticipating a bullish transfer on CHZ can look to purchase a retest of each bins, with a conservative stop-loss set under $0.167.

Conclusion

The World Cup kicks off in two months, and that could go away loads of time for Chiliz to have a bullish run. Bitcoin has seen intense promoting quantity in latest weeks.

Its rejection at $24k in August, and $22.6k this month, meant the pattern was firmly in favor of the bears. If this may reverse, Chiliz could surge as excessive as $0.43-$0.44 and presumably greater.

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