Where can chilis [CHZ] Investors are looking to take profits on the charts

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

  • The structure turned bullish last week
  • Chiliz already tested the bearish OB at $0.24 and pulled back
  • Consolidation or breakout, the trader must be prepared for both scenarios

Chili pepper [CHZ] It saw a significant increase in trading volume from the previous day. According to CoinMarketCap data, daily trading volume increased from $270 million per day last week to $702 million on October 30.

This is the AMBCrypto price prediction for Chiliz [CHZ] 2022-23

A recent article highlighted how $0.18 is a support area. CHZ is down nicely during the higher time frame bullish order block. The $0.16 support level saw buyers finally arrive in the markets.

Increase in volume with strong northward movement

Source: CHZ/USDT on TradingView

For starters, the drop below $0.17 was quite disappointing for buyers earlier this month. CHZ was charged as low as $0.16 in mid-October. Bitcoin was trading at $18.6K at the time and threatened to drop below $18K. However, the price of BTC and CHZ quickly took an upward turn.

The higher time frame structure has shifted from bearish to bullish after CHZ broke above the $0.19 level and retested the same support level. In the past three days, after this structural collapse, the price could rise by about 30%.

A chart with a lower time frame (15 minutes) was analyzed, and earlier in the day of publication a bullish order block was seen. At the time of writing, the price had retested this order block and saw a nice bounce at $0.216.

The 4 hour chart showed the RSI rising above 60 to indicate the bullish momentum. OBV has also seen gains in recent days revealing that buying pressure has been significant.

A return to the $0.24 area could lead to a breakout of CHZ or a consolidation for a while before the breakout attempt is made. In this scenario, a breakout and retest of the $0.25 level can be used to enter a long position with a target of $0.28.

Positive financing rate with significant increase in deposits

Chiliz sees an increase in demand and tries to cross $0.24

Source: feeling

Funding rate has been positive on Binance, and it has been for the past few days. This came after the breakout in the bull market structure and the subsequent rally.

Therefore, speculators have been bullish on Chili’s lately. Can this still be true even when the price enters significant resistance? There was a significant increase in CHZ deposits to exchanges during this rally. Was this a sign that sellers were rolling up their sleeves, or that buyers could absorb the selling pressure?

Traders can buy a retest after the $0.24 breakout or back to the $0.213-$0.218 region in the coming hours. The break above $0.24 should not happen immediately. Alternatively, the price could consolidate and contract within that area before another leg north, assuming Bitcoin also experiences upward momentum.

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