Chiliz (CHZ) has been showing bullish sentiment recently, with a 10% increase in the past three days, bringing the weekly gains back to 3.5%. This uptrend has reversed the early week liquidation and suggests that traders on smaller time frames are providing enough support to catalyze a genuine upswing.
The Relative Strength Index (RSI) also shows a divergence between the recent low at $0.124 and the previous swing low in January at $0.122, which is a subtle evidence of a potential market reversal. If the market is generally bullish, then the Chiliz price is likely to rally towards the $0.17 liquidity zone in the short term. Such a move would result in a 19% increase from Chiliz’s current market value.
However, traders should practice healthy risk management before joining the trend. The uptrend thesis would become void if the Bears managed to pierce the recently breached 8-day Exponential Moving Average (EMA) at $0.135. If successful, a downswing targeting liquidity levels as low as 9 cents could occur, which would result in a 30% decrease from Chiliz’s current market value.
It is important to keep an eye on Chiliz price as the uptrend seems poised to continue. Traders should also be aware of the key levels that have been defined to gauge Chiliz’s next potential move. If the bulls manage to break through the $0.17 liquidity barrier, the uptrend could potentially continue. On the other hand, if the Bears manage to break through the 8-day EMA at $0.135, the uptrend thesis would be invalidated and a downswing could occur.
Overall, Chiliz price has been showing promise, with the bulls managing to rally by 10% in the last three days and the RSI showing a divergence. The uptrend thesis could potentially continue if the bulls manage to break through the $0.17 liquidity barrier. However, traders should practice healthy risk management, as the uptrend thesis would become void if the Bears managed to break through the 8-day EMA at $0.135.
In conclusion, Chiliz price should remain on trader’s watchlists as the uptrend seems poised to rally higher. Key levels have been defined to gauge Chiliz’s next potential move, and traders should be aware of these levels in order to make informed decisions when trading CHZ.
