Disclaimer: The results of the following analysis are the author’s opinions alone and should not be considered investment advice.
- Over the past few days, Chiliz has entered a phase of high volatility, as evidenced by the Bollinger Bands.
- Altcoin exchange outflows revealed useful insights.
spices [CHZ] The bearish response from the three-month trendline resistance (white, dashed) has led to a strong pullback over the past two days. The resulting losses put the altcoin back on a downward trajectory.
Read spices [CHZ] Expect price 2023-2024
Given the relatively high correlation of altcoins with Bitcoin [BTC]Buyers should continue to consider fluctuations in the broader market sentiment before opening a position.
At press time, CHZ is trading at $0.1809, down 7.36% in the past 24 hours.
Can buyers add a convincing refutation?
The bulls were able to rally after finding reliable fundamentals from their long-term support in the $0.16 region. This recovery represents a huge ROI of 65% while forming a rising wedge on the daily chart (white).
After the bearish engulfing candle, CHZ posted an expected lower band of Bollinger Bands (BB) and trendline resistance.
The market level uncertainty instilled by the bearish setup proved to be a recipe for a powerful turnaround.
A convincing recovery from the $0.1534 support level could put the altcoin in control of the downside pressure. An immediate or potential bullish return could see the first major resistance barrier near the 200 EMA followed by the BB baseline. A close above this mark may indicate a bearish reversal
However, previous reversals from the 200 EMA resistance accelerated the selling pressure. Under these circumstances, chances of recovery may be delayed while speculators are set to retest the $0.129-$0.132 range.
The Relative Strength Index (RSI) and Balanced Volume (OBV) bounced after bullish divergence with price action. The RSI rebound from the oversold mark kept some short-term hopes alive.
How this metric can affect the price of CHZ
According to Santiment data, the CHZ recorded an important peak in outflows on November 8. Often times, these peaks are followed by a gradual increase in prices due to improved investor sentiment.
In this case, CHZ did not drive higher highs or lower lows. The reason may be due to its association with Bitcoin. Therefore, traders/investors should closely monitor the movement of Bitcoin and its effects on the broader market to take a profitable move.
The potential targets will remain the same as above.