Chiliz Bulls Test $0.2505 Resistance – Can CHZ Reach Green Zone?
Increasing volume in Chiliz intraday trades pointed to a likely bullish comeback in the coin’s price.
Since the start of trading today, the volume of Chiliz has increased from $395,564,490 to $694,854,345.
Market capitalization rose from $1,203,242,510 to $1,222,317,487 as trading volume rose.
Increases in both trading activity and market capitalization of this magnitude suggest that a turnaround may be in the works.
This could be the case if we believe real-time data. A cup-and-handle pattern appears on the chart, suggesting a possible or current upswing.
As a whole, the cryptocurrency market has been seeking to rebound from the unfavorable market conditions that have dominated the financial sphere, so the recovery should come as no surprise for Chiliz.
The ensuing crashes in April–August further reinforced the consensus that the crypto winter would last for some time.
The bulls in this market are currently testing the $0.2505 resistance level. Resistance at the 38.20 Fibonacci level sits at $0.2615, thus this price range is below that.
Any price action for Chiliz above these levels would signal a continuation of the bullish trend that began at $0.2505 and is currently in play.
Indicators provide a similar positive rebound narrative. The momentum indicator maintains a V-shaped pattern, indicating that the present market trend is rising.
The Awesome oscillator indicates a major bullish reversal at the 4-hour tick level. At the level of 5.78, the price oscillator indicates a strong buy signal for investors and traders.
The $0.2505 Barrier Poses Major Challenge
To sustain current upward trend, it is necessary to overcome the barrier at $0.2505. This is the immediate resistance the bulls will encounter before a possible push towards the 38.20 Fibonacci level. Currently, though, the bulls may have overextended and lost some impetus.
The price has failed to consolidate above the 50.00 Fib level, according to current data. This failure to surpass the 50.00 Fibonacci barrier and the following lack of momentum can transform the bullish price reversal into a bearish trend.
A short examination of the 4-hour clock reveals the formation of a double triangular pattern that may influence the recovery of the coin. The base of the formation rests directly on the 78.60 Fib level.
It is vital for bulls not to be swayed by this emerging pattern, as the CHZ coin’s recovery hinges on the larger price fluctuations at the 1-day tick mark.
If the bulls maintain their pace, we may finally witness a net price increase in the coming days.
CHZ total market cap at $1.4 billion on the daily chart | Source: TradingView.com
Featured image from Somag News, Chart: TradingView.com