March 24, 2023

has been supporting Chiliz for the past two months [CHZ] It made a comeback as it gathered enough firepower to test the $0.23-$0.24 resistance range. Additionally, the current bullish pattern could make way for a longer-term recovery on the charts.

With the 20 EMA (red) jumping above the 200 EMA (green), buyers can fight for more before possibly succumbing to the bearish trend. At press time, CHZ is trading at $0.2292.

CHZ daily chart

Source: TradingView, CHZ/USDT

The recovery from the $0.08 baseline resulted in a solid bearish invalidation as the bulls turned and reversed the trend in their favor last month. This recovery delivered a staggering 201% ROI until press time from the alt’s mid-June low.

Thus, the steep uptrend formed a U-shape, while suggesting a cup-and-handle pattern on the daily chart.

A convincing close above the $0.24 neckline could help the alt A retest of the $0.31-$0.32 range in the next meeting. But a break below the $0.19-$0.201 range would delay recovery efforts in the coming days.

Meanwhile, a bullish crossover of the 50 EMA (cyan) with the 200 EMA could set the stage for long-term growth for the altcoin. A recovery from a plausible sell-off within immediate resistance could pose a near-term hurdle.

A final close above the neckline would suggest a buy signal.


Source: TradingView, CHZ/USDT

The Relative Strength Index (RSI) is bullish while maintaining its 59 support level. But its recent peak and price action have been quite bearish. Traders must be aware of a possible near-term reversal before issuing call options.

Also, Chaikin Money Flow (CMF) showed up with buyers after rising from zero support. But the lower peaks of the Volume Oscillator over the past few days suggest that volume is declining.

A potential bounce from its immediate support could signal a spike in trading volumes.

in conclusion

With the cup and handle pattern set next to the golden cross at the 20/200 EMA, buyers are aiming for more in the coming sessions.

A close below the 20 EMA could invalidate the buying bias.This potential target will remain the same as above.

Finally, traders/investors should pay close attention to Bitcoin’s movements and its impact on the broader market in order to be profitable.

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