Crypto nugget: CHZ, a sidelined asset?

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Sport tends to bring together millions of people around the world, this space even found in the field of cryptocurrencies! You may be familiar with the Socios app, which allows users to support football teams in different ways. Sometimes you can even influence team decisions as well as some players. It is interesting, is not it?

Developed on the Ethereum blockchain, Chiliz (CHZ) is the main token of the Socios application. It gives access to various benefits especially as it is the only way to get fan tokens. However, CHZ seems to be struggling to reach former heights. Is he on the side? Let’s go straight to our charts to see a little more clearly.

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This analysis of CHZ is available to you in collaboration with: Coin Trading and algorithmic trading solution finally accessible to individuals

An asset that should not be let go on a weekly scale

Price of CHZ against dollar (1W)
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After facing resistance at around $0.55 a few times, the value of CHZ dropped sharply and bounced back to $0.16 fairly quickly. Corresponding to the May 2021 low, the asset managed to stay above this price to form a weekly support that still holds. Conversely, the price is trading below a resistance at $0.33. Since December, CHZ has not been able to break this level higher.

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Therefore, on a weekly scale, you can see the evolution of the asset between support and resistance. Price oscillating between these two levels for several weeks is in a lateralization state. Additionally, we can add a pivot zone observation at the $0.23 level that acts as a support or resistance to the analysis. If the price is below the pivot zone, the last one works as resistance. Conversely, the pivot zone acts as support when the price is up. In fact, if you look at the price curve in the past, that was mostly the case.

So, on a weekly scale, here are the key levels you should watch in the asset. Note the price action in the pivot zone. Theoretically, if it stays up, CHZ has a better chance of rising again. However, an outage will increase the chances of returning to weekly support. I also invite you to watch the weekly support and resistance vigorously. When the asset breaks one of these levels sooner or later, there is no doubt that a strong move will occur in the coming weeks. However, let’s not stop there. Now let’s move on to the daily scale to analyze CHZ in more detail.

What are the expected scenarios for CHZ?

Daily rate of CHZ against the dollar
Price of CHZ against dollar (1D)

On a daily scale, the situation regarding the current pivot zone is mixed. Is it bearish with a pullback before a pullback? Or will we see an upward trend again to higher price levels? Yesterday, CHZ started to rest at $0.21, a resistance for a short period of time. In this context, it would be positive for the pivot zone to bounce back as it will allow the asset to bottom out higher than before and theoretically allow the bullish momentum to be maintained in the short term.

In this context, different objectives can be envisaged:

  • A return to $0.27, a technical level that functions as support and resistance.
  • Continuity up to $0.30 is the resistance the price is facing on a daily scale.
  • $0.33 is weekly resistance, which is a necessary level to maintain hope for a major change in dynamics.

Conversely, if we face the loss of the pivot zone with a weekly confirmation, we can set different bearish targets as follows:

  • $0.21 corresponding to a resistance now allows CHZ to recover.
  • A return to the daily pivot zone at $0.19. Here it will be necessary to wait for a buying response.
  • The loss of the aforementioned area will signal a return to weekly support at $0.164.

We’ve already come to the end of this analysis of CHZ! After examining the weekly and daily scale, we can see that the asset is at a large level that it should not lose. Depending on the loss or recovery of the weekly pivot zone, the scenario will be completely different, but now that you have in mind all the levels to watch, you will be prepared. It is true that a very clear position statement for the coming weeks is complex given the current state of the market. In addition, the European Central Bank will soon have the opportunity to express itself on interest rates. Therefore, it is likely to experience volatility in the markets. So be mindful of your positions by managing your risk in the best possible way!

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Source From: Google News

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