Chiliz price is primed for a 40% appreciation when the bullish triangle plays out.
CHZ sees the test on the trend line holding strong and bouncing.
Expect pressure to start building toward $0.1430 for a breakout toward $0.1770.
Chiliz (CHZ) price underwent a nosedive move on Wednesday after bulls burned their fingers against the ceiling near $0.1430. It is granted that CHZ is in a bullish pattern, but the breakout was too preemptive and premature, which triggered a slide lower. The bullish pattern is still intact and bulls are still primed for that 40% gain that revalues Chiliz price at $0.1770.
Chiliz price shows bulls being resilient
Chiliz price can be labeled as pretty resilient as bulls can withstand a 10% drop on Wednesday after hitting the base of the bullish triangle at $0.1430. That there is still room to move and build pressure is granted as it was already a bit too preemptive for a breakout. With the green ascending trendline doing its work just nicely, pressure will soon rebuild as CHZ continues its ascent.
CHZ thus will further bounce off the green ascending trendline, building pressure against the $0.1430 baseline for a breakout. Mind the gap warning at $0.15 where the 200-day Simple Moving Average could be proven a bit of a challenge. Once that is cleared, it is smooth sailing toward $0.1770 with a 40% gain to book.
The bullish triangle could become a bit of an issue on the topside as already a double top has been formed. Just a tad above there the monthly R1 resistance level is present. $0.1430 will be very hard to crack and might even trigger an even deeper sell-off as seen on Wednesday. If the green ascending trendline breaks, CHZ could retrace toward $0.12 to find support near the monthly pivot.
