Chiliz sees a minor rally but how high can the CHZ bulls push the price
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Chiliz faced rejection at a bearish order block near range highs
- Will the range lows see sufficient demand to propel CHZ higher once again
USDT (Tether) Dominance saw a large rally in November as fear in the markets forced traders and investors to flee into stablecoins. However, it saw a decline in the past 36 hours as Bitcoin and the rest of the crypto market saw a minor rally. Chiliz also bounced from the $0.167 support level.
Read Chiliz’s [CHZ] Price Prediction 2023-24
A buying opportunity could arise on another leg downward for CHZ. However, at the time of writing, the FOMC minutes were yet to be released and this could induce volatility in the markets.
Bearish 12-hour order block saw a reaction, has CHZ found a local bottom again, or can it dip lower?
Chiliz formed a range between $0.28 and $0.16, and the price bounced between these two levels since 23 September. The mid-range value lay at $0.22, and at the time of writing the price saw a decent reaction from the $0.167 support level.
Yet, the market structure on the daily timeframe was bearish for Chiliz. The Relative Strength Index (RSI) was below neutral 50, while the On-Balance Volume (OBV) also formed a lower high and a lower low in November. This showed that selling pressure was strong in recent weeks and slightly dominant over the buying volume.
The Fibonacci retracement levels plotted showed that $0.18 was the 23.6% retracement level. On lower timeframes, the $0.175-$0.18 area has been important support in recent weeks. $0.188-$0.19 would likely offer some resistance should CHZ see some gains.
Even though buying an asset near the low of a three-month range can be a good risk-to-reward trade, there was the threat of heightened volatility. Another drop toward $0.16 could materialize, and buyers can wait for such a dip. Invalidation of their bullish idea would be a drop beneath $0.145.
Mean coin age falls while network growth and active addresses see a surge
The fall in the mean coin age meant that there was a rise in the movement of CHZ tokens between addresses. Given the rising trend of active addresses (30-day) in the past three weeks, the falling mean age was not a surprise. Network growth was also high in the two weeks before the World Cup kicked off.
A rising slope on the mean coin age metric can precede a strong rally in prices. Higher timeframe investors can keep an eye on this metric, as well as the price action. Such a slope could take a few weeks to materialize.