- Chiliz price has been on an extended consolidation phase for more than a month.
- A recent spike in buying pressure has allowed CHZ to take a jab at the supply zone ranging from $0.68 to $0.89.
- For a massive bull rally, a decisive close above the upper boundary of this zone is a must.
Chiliz price is preparing for another explosive run-up that could be the start of a larger bull rally.
Chiliz price stuck between two crucial levels
On the 12-hour chart, Chiliz price reversed its downtrend after retracing nearly 62% from its highs. The new uptrend pierced into the 4-hour supply zone that ranges from $0.68 to $0.89 but failed to breach it. Now a pullback toward the demand is underway.
This downtrend could be cut short by the Momentum Reversal Indicator’s (MRI) State Trend Resistance at $0.61.
Although CHZ price could break down this resistance level, it could see a resurgence of buyers around the upper boundary of the support barrier at $0.52.
Therefore, a spike in bullish momentum that results in a decisive 12-hour candlestick close above $0.89 will signal the start of a new rally.
Secondary confirmation of this upswing will arrive after the Chiliz price overcomes the all-time high at $0.95. After convincingly surpassing this crucial point, investors can expect CHZ to surge nearly 200% to $1.95 from the current price level.
If the FOMO kicks in during this rally, CHZ bulls could target $3, which would be a 340% surge.
CHZ/USDT 12-hour chart
Regardless of the bullish outlook, a breakdown of the current weekly open at $0.46 could signal weakening buyer pressure that could either halt the upswing or delay it. The worst-case scenario that could invalidate the bullish outlook would be for the Chiliz price to shatter the lower band of the demand zone at $0.35.
This move would trigger a 15% downtrend to $0.29.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.