The past few weeks have been all about altcoins who have known nice ascents. however, the underlying trend off the market bearish ; especially since yesterday afternoon, the market reacted strongly to the decline after the inflation figures. Today let’s take a look at the active CHZ off the platform chilliz. have had an experience quite impressive increase, it seems relevant to look at it to understand the situation on different time scales. Without further ado, let’s go to TradingView!
This analysis of the CHZ is offered to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to private persons.
Chiliz in a weekly uptrend
After hovering around $0.08 in June- during the’significant decrease that cryptocurrencies have known, the CHZ has gradually recovered. After moving below a USD 0.11/0.113 (light gray rectangle) resistance zone for a few weeks, the bullish breakout led to a powerful move. The asset has rejoined the previous range in which he evolved between March 2021 and May 2022. However, he has no Not complete to remove a key level to $0.24. Is this a sign of buyer exhaustion or a simple pause before new highs resume?
For now, on a weekly scale, the trend is bullish. On the level of 0.172/0.175 there is a confluence of EMA and the moving average of 100 (shown in blue). Theoretically it is a technical area that the CHZ should not lose to maintain the momentum of the past few weeks. For example, if you look at the trend reversal from last November, the price broke up only last month. In March 2022, we saw a false break in the downtrend, which held many buyers before going back down.
Will the next few days be hectic?
When we move on a time scale, we see that the asset evolves globally between a local support at $0.183 / $0.185 and a resistance at $0.219/0.222. Currently, the H4 trend is: bearish with a loss of the pivot zone of $0.202. The current challenge is to determine where the CHZ will exploit an outbreak. On a 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 some real bearish momentum. On the chart you can find some annotations for the bearish scenario with levels to look at: $0.164 (lower limit of the previous week range), $0.154 and $0.141.
For a bullish recovery, the first phase is of back to the turning zone also using the EMA200 H4. If successful and the market environment is favourable, the CHZ will likely be able to ramp up its resistance. After that, it will be necessary to monitor the reaction of the price to see if it is rejected or if a bullish breakout occurs. If he manages to overcome the resistance, bullish targets are located on 0.24, 0.265 and $0.284. These are technical levels that the price has reacted to many times in the past.
How does Chiliz (CHZ) fare against Bitcoin?
Although The Merge is the center of attention, Bitcoin managed to regain momentum and win market dominance cryptocurrencies. It is interesting to look at the situation of the altcoin CHZ against the king of cryptocurrencies to determine the current balance of power. Note that the CHZ is in a bullish trende in 3D and surpasses always bitcoin. If it does not lose the area it is in (past resistance) and recaptures the MA100, we can expect the asset to return to its previous high.
In this context, this will put CHZ in a strong position and promote gains against the dollar if Bitcoin does not fall below $20,000. However, if the CHZ loses this important area, it will enter a phase of underperformance and likely return to the black line shown on the chart. This can hurt the asset’s position against the dollar if the price of Bitcoin falls.
Here we are at the end of this analysis. you can see that the CHZ is in the H4 range and on its way to its support. We invite you to monitor its dynamics against Bitcoin to amplify a bullish or bearish bias and consolidate your plan against the dollar. Obviously, if the CHZ gets into trouble against the king of cryptocurrencies and the latter threatens to fall, it will be difficult to keep its support at 0.183. the more, the fusion approaching fast, market will probably be volatile. Manage your risk well and check the levels identified during the analysis! Good luck in the financial markets!
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