Cryptoclump: CHZ, an asset on the sideline?

Sports, this field that tends to gather millions of people around the world, even exists within cryptocurrencies! You may be familiar with the Socios app, which allows users to support football teams in a variety of ways. Sometimes you can even influence team decisions, as well as some players. Interesting, right?

Chiliz (CHZ), developed on the Ethereum blockchain, is the main symbol in the Socios app. It offers access to various benefits, especially as it is the only way to acquire fan tokens. CHZ, however, seems to be struggling to reach old heights. Is he on the sidelines? Let’s go straight to our graphs to see a little more clearly.

This analysis of CHZ is offered to you in collaboration with Coin trading and its algorithmic trading solution finally available to individuals

An asset that must not let go of the weekly scale

CHZ exchange rate against the dollar on a weekly basis
The price of CHZ against dollars (1W)

After several times being confronted with a resistance that is around $ 0.55, the value of CHZ dropped markedly and returned fairly quickly to $ 0.16. Corresponding to the low of May 2021, the asset managed to hold above this price to build a weekly support that is still relevant. On the contrary, the price is also moving below a resistance, which is at $ 0.33. Since December, the CHZ has not been able to break this level higher.

You can therefore see, on a weekly scale, a development of the asset between support and resistance. Oscillating between these two levels for several weeks, the price is in a situation of lateralization. In addition, we can add to the analysis the observation of a pivot zone, located at $ 0.23, which plays a role as support or resistance. In case the price is below the pivot zone, the latter acts as resistance. Conversely, the pivot zone acts as support when the price is over. That was actually most the case if you look at the price curve earlier.

So on a weekly scale, here are the key levels you need to look at the asset. Pay attention to the price action on the pivot zone. Theoretically, if it stays over, CHZ has a better chance of rising again. However, a crash will increase the chances of returning to the weekly support. In addition, I invite you to vigorously monitor the weekly support and resistance. When the asset sooner or later breaks one of these levels, it is no doubt clear that a strong movement will take place in the weeks after. However, let’s not stop there. Let us now move on to the daily scale to analyze CHZ in more detail.

What scenarios can be expected for CHZ?

Daily exchange rate for CHZ against dollar
Price of CHZ against dollar (1D)

On a daily scale, the situation is mixed with regard to the current pivot zone. Do we have a bearish breakout with a pullback before we go down again? Or will we see bullish reintegration back to higher price levels? Yesterday, the CHZ fell to $ 0.21, a level that for a short period was a resistance. In this context, the bullish reintegration of the pivot zone would be positive, as it would allow the asset to record a low point higher than the previous one, which theoretically allows the bullish momentum to be maintained in the short term.

In this context, one could imagine different goals:

  • A return to $ 0.27, a technical level that served as support and resistance.
  • Continuity up to $ 0.30, the resistance price faces on a daily scale.
  • The $ 0.33, the weekly resistance, which is a significant level to resume in hopes of a major change in dynamics.

Conversely, if we face the loss of the pivot zone with a weekly confirmation, we can establish various bearish targets, which are as follows:

  • $ 0.21, a level equivalent to a resistance, now allows the CHZ to rise.
  • A return to the daily pivot zone, which is at $ 0.19. Here it will be necessary to expect a buying reaction.
  • A loss of the area mentioned above will signal a return to the weekly support of $ 0.164.

We are already at the end of this analysis of CHZ! After studying the weekly and daily scale, we can see that the asset is at a high level that it should not lose. Depending on the loss or recovery of the weekly pivot zone, the scenario will be completely different, but you will be ready as you now have in mind all the levels you need to see. It is true that a very clear statement of position for the coming weeks is complex given the current market situation. In addition, the European Central Bank will very soon have the opportunity to comment on its interest rates. Thus, market volatility is likely to occur. So be careful with your positions by managing your risk as best you can!

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