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Chiliz [CHZ]: A change in market structure, cautiously bullish traders, and…

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Chiliz [CHZ]: A change in market structure, cautiously bullish traders, and...
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • Can World Cup high spur Chiliz on towards new heights?
  • Stiff resistance levels are ahead for CHZ, but a bullish Bitcoin can help Chiliz break above these

The launch of Scoville Testnet Phase 4 has been announced by Chiliz. This came around the time when the token broke above its local resistance level at $0.19. With Bitcoin also having a lower timeframe bullish bias, it looks like CHZ can register more gains.


Here’s AMBCrypto’s Price Prediction for Chiliz [CHZ] in 2022-23


Over the past week, CHZ saw a break in market structure to the bullish side. However, at press time, it faced significant resistance near the $0.2-mark.

Demand was present at $0.16 and CHZ was quick to rally

Chiliz traders are cautiously bullish as the recent pump shifts market structure

Source: CHZ/USDT on TradingView

In cyan, a bullish order block from mid-September was highlighted. In recent weeks, the price threatened to break under this zone. However, there seemed to be ready buyers at the $0.16-mark. The bounce from that level saw the RSI slowly pull itself back above the neutral 50-line. This showed bullish momentum in recent days.

The bullish momentum was also reflected in CHZ’s break of market structure from bearish to bullish, highlighted on the chart. The DMI also denoted a strong upward trend in progress as both the ADX (yellow) and the +DI (green) were above the 20-mark.

One concern for the bulls is the slightly diminished trading volume over the past couple of days when the move upward occurred. Is this a sign that buyers have already run out of steam?

Traders might not want to buy CHZ, at the time of writing, as it did not offer a good risk-to-reward buying or selling opportunity. Sellers can look to short the asset with a stop loss above the $0.21-mark. On its way down earlier this month, CHZ did not test the liquidity around the $0.21-area. Hence, a revisit to this zone could face rejection and a retest of $0.207 can offer a buying opportunity targeting $0.22 and $0.24.

On the other hand, the bulls will begin to lose conviction if the price dips back beneath the $0.19-level where it posted its most recent higher low.

The funding rate is positive as speculators remain bullish on Chiliz

Chiliz traders are cautiously bullish as the recent pump shifts market structure

Source: Santiment

Its positive funding rate indicated that long positions paid funding periodically to short position holders. It implied that the majority of the market has been bullishly positioned. Combined with the bullish structure shift, speculator confidence is understandable. The Supply on Exchanges, on the other hand, has undergone a significant drop.

It formed a peak around late September with nearly 35% of the supply on known exchange wallets. This was followed by a sell-off and a drop to $0.16 on the price charts.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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