Nov 19, 2024
6thTrade
Chiliz (CHZ) continues its bullish momentum, trading in the green on Tuesday after a 14.76% surge on Monday. The token's technical indicators suggest a potential 40% upside, with open interest also climbing, signaling fresh capital inflows.
CHZ Breaks Key Resistance, Targets $0.118
CHZ closed above its 200-day Exponential Moving Average (EMA) at $0.075 on Monday, setting the stage for further gains. As of Tuesday, it trades at approximately $0.081, with its next critical resistance level at $0.084.
A daily close above $0.084 could propel CHZ to its 61.8% Fibonacci retracement level at $0.118. This retracement is calculated from the May 30 high of $0.165 to the August 5 low of $0.043, presenting a potential 40% rally.
Indicators Support Bullish Momentum
The Relative Strength Index (RSI) on the daily chart is currently at 65, trending upward. While this indicates growing bullish momentum, it remains below overbought conditions, leaving room for further price increases.
Additionally, data from Coinglass reveals a significant rise in Chiliz’s Open Interest (OI), which grew from $28.67 million on Monday to $44.64 million on Tuesday—its highest level since October 31. This increase in OI reflects new money entering the market, further supporting the bullish outlook.
Risks to the Bullish Thesis
Despite the strong setup, Chiliz must close above $0.084 to maintain its upward trajectory. A failure to do so, coupled with a daily close below $0.067, would invalidate the bullish thesis. In this scenario, CHZ could decline further to retest the November 15 low of $0.061.
Outlook
With bullish technical indicators and increasing market activity, Chiliz appears poised for a significant rally. However, traders should closely monitor the $0.084 resistance level as a critical inflection point.
