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Chiliz Price Prediction: CHZ volume taper leaves a trail of optimism

  • Chiliz price has traded for six weeks in the mid-$0.130 zone.
  • CHZ may be setting up for a retest of last month’s high at $0.178.
  • Invalidation of the bullish outlook would arise from a $0.017 swing point tag.

Chiliz price has spent several weeks consolidating near $0.13 after a massive influx of buying pressure witnessed in January. The technicals suggest bulls still have a shot at tagging higher targets.

Chillz price is building a cause

Chiliz price continues to consolidate while showing optimistic gestures. When analyzing the Volume Indicator, a clear tapering pattern has been carried on over the last six weeks. The reduced transactions come after the massive influx of a $1.26 billion dollar trading week when  CHZ  rallied 26% between January 9 and January 14.  

Chiliz price currently auctions at $0.134. The volume taper being produced may hint that smart money bulls are holding on to their initial long positions while utilizing the last six weeks to dollar cost average a second position. A Fibonacci Retracement tool surrounding the year-to-date low and highs at $0.090 and $0.170, respectively, show the current trading range as a 50% retracement, an ideal territory where downtrend corrections find a floor.

Combining these factors, the CHZ price stands a fair chance of continuing north. A conservative target zone would be a retest of the February high at $0.178, creating the potential for a 33% increase from Chiliz current market value.

tm/chx/3/2/22

CHZ/USDT 1-Week Chart

Still, traders should remember that the consolidation could expand to the downside and fill in the gaps within the Golden Pocket 61.8 FIbonacci zone near $0.123. Therefore, a breach of the $0.117 level would be needed to void the bullish potential, as it would invalidate the impulsive wave structure for CHZ established on January 1. If the breach occurs, traders can expect a decline targeting the YTD low at $0.098, resulting in a 26% decrease from the current Chiliz price today. 

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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