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Chiliz Price Prediction: CHZ headed south for the winter

  • Chiliz price declines by 13%, making it the largest red day this year.
  • CHZ could decline an additional 20% in the short term targeting $0.10.
  • Invalidation of the bearish thesis would come from a hurdle above $0.179.

Chiliz price shows concerning bearish signals. There are some reasons to believe a downtrend is already underway.

Chiliz price has a strong bearish presence

Chiliz price witnessed a 13% decline, making it the largest red day of 2023. The bearish influence should concern investors as it has reached significant levels of support, one being the 8-day exponential moving average and two, trendlines that provided resistance throughout the previous rally. The CHZ token has also breached a previous swing low of $0.134, which subtly changes the market structure. Considering these factors, the Chiliz token may have already started the downtrend.

Chiliz price currently auctions at $0.137. At the time of writing, the bears are trying to solidify the bearish narrative by establishing a daily candlestick close beneath the 21-day simple moving average (SMA). If successful, the CHZ token could decline as low as the $0.100 barrier, where the 21-day SMA crossed with the 21-day SMA and catalyzed the 63% rally this winter. The scenario creates the potential for a 20% decline in market value.

The Relative Strength Index compounds the bearish idea as the recent swing high at $0.179 shows a divergence between the previous swing high near the $0.140 zones.

tm/chz/2/9/22

CHZ/USDT 1-Day Chart

Invalidation of the bearish thesis could occur, but the bulls will need to hurdle the current swing high at $0.179. In doing so, the bulls will likely be on pace to target the $0.200 zone. The Chiliz price would increase by 44% if the bulls were to succeed.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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