Chiliz Price Prediction: CHZ prepares for 52% downswing

Chiliz recently hit a snag at $0.98, halting the tremendous rally witnessed from January. A correction followed with the token losing nearly half of its value. In the meantime, CHZ struggles to hold onto crucial support that may save it from a potentially massive breakdown.

Chiliz declines could increase appreciably

The 4-hour channel has brought to light the formation of a descending triangle. This pattern is bearish and leads to a reversal after the asset experiences a significant upward price action. The triangle is created using two trendlines whereby one connects declining peaks and links the relatively equal troughs.

A breakdown is anticipated once Chiliz slices through the triangle support (x-axis). Triangles have precise breakout and breakdown targets measured from the highest to the lowest point of the patterns. As for CHZ, a 52% downswing would see it explore downhill levels toward $0.22.

CHZ/USD 4-hour chart

Santiment’s holder distribution metric reveals that whales are on a selling spree. The large volume holders have been emptying their bags since the all-time high of $0.98. Addresses containing between 1 million and 10 million coins topped out at 148 on March 12 but have dropped to 128 at writing. The 13.5% downswing in the whales suggests that overhead pressure will continue to rise in the coming sessions.

Chiliz holder distribution chart

It is worth noting that the 4-hour chart highlights support at the 50 Simple Moving Average. This buyer congestion zone, in conjunction with the triangle's x-axis, will try to stop the potential losses. If this support holds, Chiliz will commence a recovery mission, leading to a massive upswing toward a new all-time high.