Sport, this field which tends to bring together millions of people around the world is even found in the sphere 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. Interesting, right?
The Chiliz (CHZ), developed on the Ethereum blockchain, is the main token of the Socios app. It provides access to various advantages, especially since it is the only way to acquire fan tokens. However, the CHZ seems to be struggling to reach old heights. Is he on the sidelines? Let’s go directly to our graphs to see a little more clearly.
This analysis of the CHZ is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals
An asset that must not let go on a weekly scale
After several times being confronted with a resistance which is roughly at 0.55 dollar, the value of the CHZ fell sharply, returning fairly quickly to 0.16 dollar. Corresponding to the low point of May 2021, the asset managed to hold above this price in order to build a weekly support which is still relevant. On the contrary, the price is also moving under a resistance which is located at 0.33 dollar. Since December, CHZ has been unable to break this level higher.
You can therefore see, on a weekly scale, an evolution of the asset between support and resistance. Oscillating between these two levels for several weeks, the price is in a situation of lateralization. In addition, we can add to the analysis the observation of a pivot zone, located at 0.23 dollar, which plays a role of support or resistance. In case the price is below the pivot zone, the latter operates as resistance. Conversely, the pivot zone acts as support when the price is above. In fact, that was mostly the case if you look at the price curve in the past.
So, on a weekly scale, here are the key levels you need to watch on the asset. Pay attention to the price action on the pivot zone. Theoretically, if it stays above, the CHZ has a better chance of rising again. However, a break down will increase the chances of a return to the weekly support. In addition, I invite you to strongly monitor the weekly support and resistance. When the asset sooner or later breaks one of these levels, it is undoubtedly evident that a strong movement will take place in the weeks to follow. However, let’s not stop there. Let’s now move on to the daily scale to analyze the CHZ in more detail.
What are the scenarios to be expected for the CHZ?
On a daily scale, the situation is mixed regarding the current pivot zone. Do we have a bearish breakout with a pullback before heading back down? Or are we going to see bullish reintegration back to higher price levels? Yesterday, the CHZ came to rest on the 0.21 dollar, a level which was for a short period a resistance. In this context, the bullish reintegration of the pivot zone would be positive since it would allow the asset to register a trough higher than the previous one, theoretically allowing the bullish momentum to be preserved in the short term.
In this context, different objectives could be envisaged:
- A return to $0.27, a technical level that operated as support and resistance.
- Continuity up to $0.30, the resistance the price is facing on the daily scale.
- The 0.33 dollar, the weekly resistance which is an essential level to resume to hope for a major change in dynamics.
Conversely, if we face the loss of the pivot zone with a weekly confirmation, we can establish different bearish objectives which are as follows:
- The 0.21 dollar, a level which corresponded to a resistance, now allowing the CHZ to rebound.
- A return to the daily pivot zone which is at 0.19 dollars. Here it will be necessary to expect a buying reaction.
- A loss of the area mentioned above will signal a return to the weekly support at $0.164.
We are already at the end of this analysis of the CHZ! After studying the weekly and daily scale, we can see that the asset is on a major level that it should not lose. Depending on the loss or recovery of the weekly pivot zone, the scenario will be totally different, but you will be ready since now you have in mind all the levels to watch. 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 have the opportunity to express itself very soon about its interest rates. Thus, volatility will likely occur in the markets. So be careful with your positions by managing your risk as best as possible!
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