Chiliz sees a slight uptick but how far can CHZ bulls push the price

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

  • Chiliz encountered rejection at a bearish order block near the highs
  • Will the lower bands see enough demand to push CHZ up again?

USDT (Tether) dominance surged in November as fear in the markets forced traders and investors to flee to stablecoins. However, it has seen a decline in the last 36 hours as bitcoin and the rest of the cryptocurrency market have seen a slight uptick. Chiliz also bounced off the $0.167 support.

Read Chili’s [CHZ] Price forecast 2023-24

A buying opportunity may appear in another downtrend for CHZ. However, at the time of writing, the FOMC meeting minutes have not yet been released and this could lead to volatility in the markets.

The bearish 12-hour command block saw a reaction. Has CHZ found a local bottom again, or can it go lower?

Source: CHZ/USDT on TradingView

Chiliz formed a range between $0.28 and $0.16, and the price has been bouncing between these two levels since September 23rd. The middle range was at $0.22 and at the time of writing, the price saw a decent reaction from the $0.167 support level.

However, the market structure on the daily time frame was bearish for Chili’s. The Relative Strength Index (RSI) was below a neutral 50, while Balance Volume (OBV) also formed a lower high and lower low in November. This showed that selling pressures have been strong in recent weeks, somewhat dominating buying volume.

The plotted Fibonacci retracement levels showed that $0.18 was the 23.6% retracement level. On the lower timeframes, the $0.175-$0.18 area has been an important support in recent weeks. $0.188-$0.19 is likely to offer some resistance if CHZ sees some gains.

While buying an asset near the lowest level in a three-month range can be a good risk-to-reward trade, there was the threat of increased volatility. Another decline could be achieved towards $0.16, and buyers can wait for such a drop. A drop below $0.145 would be invalidating their bullish idea.

The average age of the coin is decreasing while network growth and active addresses are seeing an increase

Chiliz is back at lows again, but can buyers take heart?

Source: feeling

The decrease in the average life of the coins means that there is an increase in the movement of CHZ tokens between addresses. Given the upward trend of active addresses (30 days) over the past three weeks, the decrease in average age is not surprising. Network growth was also high in the two weeks prior to the start of the World Cup.

A higher slope in the average life of the coins could be preceded by a strong price hike. Investors in the longer time frame can monitor this metric, as well as the price action. This tendency may take a few weeks to materialize.

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