Chiliz Price Prediction: CHZ Volume Taper Leaves a Trail of Optimism
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.
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 is currently auctioning 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.
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.
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 avoid 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.
Chiliz (CHZ) price has traded for six weeks in the mid-$0.130 zone, with buyers pushing the price up to highs of $0.178 in February. Despite the downturn, the technicals suggest bulls could retest last month’s high at $0.178.
The volume taper pattern seen over the last six weeks highlights retreating trading volumes, indicating a potential bullish accumulation phase. The taper occurs after a phenomenal trading week that saw the price of CHZ shoot up by 26%, and the trend observed suggests that bulls may be holding on to their positions.
One of the essential indicators in supporting an increased forecast is the 50% retracement, which makes the current trading range of CHZ at an ideal territory where downtrend corrections find a floor between the year-to-date lows and highs of $0.090 and $0.170, respectively. Therefore, by combining the volume taper pattern, Fibonacci Retracement tool, and current trading range, Chiliz stands a fair chance of continuing north.
A retest of the February high at $0.178 represents the target zone, creating the potential for a 33% increase from its current market value. Nevertheless, traders should keep in mind that the consolidation could expand to the downside and fill the gaps within the zone near $0.123, which might deplete the value of CHZ.
Thus, traders should exercise caution, with a breach of the $0.117 level needed to avoid bullish potential. This is because it would invalidate the impulsive wave structure for CHZ established on January 1, and a subsequent decline could be expected, targeting the YTD low at $0.098.
Chiliz (CHZ) price has been consolidating near the $0.13 price level after a massive influx of buying pressure witnessed in January that saw the price shoot up by almost 50%. However, the reduced trading volumes observed after the rally suggest that bulls may be holding on to their long positions.
The Fibonacci Retracement tool, combined with current technical trends, makes a retest of the February high at $0.178 highly likely, creating a potential 33% increase from its current market value. However, traders should be cautious as a breach of the $0.117 level could invalidate the bullish potential and result in a decline targeting the YTD low at $0.098.
Nonetheless, smart money bulls appear to have a positive outlook, with the six week period of consolidation providing an opportunity to accumulate and hold on to their positions. Overall, the outlook for Chiliz remains positive with an increased likelihood of an uptick in the value of CHZ with the potential for retesting previous highs.