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Chiliz price looking for shelter, but CHZ pattern projects a new correction low

  • Chiliz price frustrates bulls as head-and-shoulders bottom fails to materialize.
  • CHZ shaping a symmetrical triangle pattern on the 1-hour chart.
  • IOMAP data has bulls staring at a wall of extraordinary resistance.

At the time of writing, CHZ is nearing the completion of a symmetrical triangle pattern on the intra-day chart, indicating that the digital token is primed to resume the decline.

Chiliz price needs time to bottom, forcing speculators to practice patience

Today’s Intotheblock In/Out of the Money Around Price data points to noteworthy resistance extending from $0.422 to $0.472 with 90.87% of the addresses out of the money and only 8.98% in the money.

CHZ IOMAP data

CHZ IOMAP data

Within the blink of an eye, CHZ fell 32% in overnight trading, smashing the 61.8% Fibonacci retracement of the February-March advance and putting it on pace to test the 100-day simple moving average (SMA) before a wave of buying moved through the cryptocurrency market.

A symmetrical triangle pattern quietly forms on the 1-hour chart with a measured move target of 26% from the triangle breakdown, equaling a price target of $0.297. Before reaching the target, CHZ will need to tackle the 61.8% retracement, which is just below the triangle’s breakdown at $0.392. Next up is the April 7 low at $0.365, followed by the overnight low at $0.313.

If selling accelerates, CHZ could hit the 100-day SMA at $0.260 and even the 78.6% retracement at $0.233.

CHZ/USD 1-hour chart

CHZ/USD 1-hour chart

The symmetrical triangle could resolve to the upside and gain price traction, putting it on a collision course with solid resistance between $0.441 and $0.451. If bulls successfully maintain the rebound, they can look forward to resistance at the 50-day SMA at $0.485.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

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