- Chilliz price is consolidating inside a descending triangle formation.
- The recent 6-hour candlestick closed below the setup’s base, triggering a 47% crash.
- A decisive close above $0.58 will invalidate the bearish outlook.
Chiliz price seems to be leaning toward the sellers as it broke out of a bearish pattern recently.
Chiliz price kickstarts a downtrend
Chiliz price has been forming a series of lower highs since hitting a local top at $0.95, suggesting aggressive sellers. So far, the bulls seem to be defending these minor corrections, which has created a horizontal support level at $0.49.
If trend lines connecting the swing highs and the demand barrier were to be drawn, Chiliz price reveals a descending triangle pattern in play. This setup forecasts a 47% crash to $0.26, determined by measuring the distance between the pivot high and flat support and adding it to the breakout point at $0.49.
The recent 6-hour candlestick has already closed below the flat support, which indicates the start of a downtrend. Interestingly, the target at $0.26 coincides with the 61.8% Fibonacci retracement level.
Investors need to be wary of the 100 Simple Moving Average (SMA) on the 6-hour chart at $0.37, which could deter the downtrend.
CHZ/USDT 6-hour chart
The demand barrier at $0.37 could do more than just deter the downtrend. If buyers begin to pile up around this level, a full-blown reversal could occur. However, to invalidate the bearish scenario, bullish momentum needs the Chiliz price to bust through the 50 SMA at $0.58.
In such a case, CHZ could continue its ascent to retest the all-time high at $0.95.
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.
Recommended Content
Editors’ Picks
Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move
Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year.
Cardano price rallies with surge in DEX volume and new meme coin launch
Cardano-based decentralized exchange Minswap registered a large spike in transaction volume since the beginning of May. Between May 1 and 30, transaction volume surged from $10 million to $72 million.
Shiba Inu eyes recovery as holders pull more than 44 trillion tokens off exchanges
The reserve of Shiba Inu tokens across cryptocurrency exchange platforms has consistently declined between March and May. SHIB holders have pulled 44.53 trillion tokens off exchanges.
XRP likely set for price rally as network activity heats up
XRP Ledger’s native token XRP registered an increase in address activity on Monday, when more than 490,000 addresses interacted on the network, signaling an impending price rally.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.