Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about 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 prior to now 12 months.
Its visibility and the upcoming FIFA World Cup may see a surge in demand for CHZ. On the charts, a bullish bias appeared warranted based mostly 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
Supply: CHZ/USDT on TradingView
The three-day chart exhibits the asset in a powerful downtrend. Certainly, Chiliz had not overwhelmed its earlier decrease excessive from November to June. Slowly, this started to shift as demand started to reach with power in July and August. In August, the value broke above the decrease highs it set in Could, and shifted the market construction to bullish.
A trendline resistance (yellow) from November was additionally damaged within the latest previous. On the time of writing, the $0.247 resistance degree was the goal for bulls to flip to help. If this will happen, one other leg upward towards $0.33 may start to brew.
One factor to notice was that, at the same time as CHZ pushed larger, the Relative Energy Index (RSI) may fail to make the next excessive. This bearish divergence (orange) if confirmed may precede a big pullback for CHZ.
Rationale
Supply: CHZ/USDT on TradingView
The 12-hour chart confirmed that the demand has certainly been on the rise since late June. The On-Steadiness Quantity (OBV) has made regular larger lows. On 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 within the $0.16-$0.24 area.
The 2 highlighted cyan packing containers 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 packing containers, with a conservative stop-loss set under $0.167.
Conclusion
The World Cup kicks off in two months, and that would depart 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 development was firmly in favor of the bears. If this will reverse, Chiliz may surge as excessive as $0.43-$0.44 and presumably larger.