Disclaimer: The results of the following analysis are the author’s sole opinion and should not be considered investment advice.
Chiliz’s [CHZ] The rebound from the $0.08 baseline orchestrated a bullish rally that propelled the coin above its 20/50/200 EMA bond. While locking in a position above these barriers, CHZ marked the expected breakout of its bullish pattern on the daily chart.
With the northbound 50 EMA (cyan) sliding past the 200 EMA (green), buyers can look to accelerate their advantage in the future.
But broader market sentiment appeared to have deteriorated. Therefore, buyers should look for entry triggers discussed below before calling options.
At press time, CHZ was trading at $0.2365, down 2.06% over the past 24 hours.
CHZ daily chart
Over the past few weeks, the bulls have found enough firepower to consistently see higher peaks and troughs. A recovery from the $0.08 level required a staggering 215% ROI until CHZ hit a four-month high on Aug. 23.
The decline from this level has formed a classic descending channel on this time frame. The resulting breakout sent the coin up in the short term.
A convincing close above the $0.23 to $0.24 range could help the alt Retest of $0.263-$0.28 range in the next meeting. But a break below the $0.23 area could hamper the bullish progress.
Meanwhile, a golden crossover of the 50 EMA (cyan) with the 200 EMA could provide a solid foundation for the long-term growth of the altcoin. Moreover, the near-term retracement will continue to find a basis for a rally in the $0.19 to $0.2 range.
This Relative Strength Index (RSI) Take a bullish stance while eventually breaking the 59 support level. A sustained move above that threshold will help buyers find new highs on the charts.
also, Volume Oscillator (VO) There were higher peaks in the most recent rally. The reading hinted at a relatively strong bullish move over the past few days.
at last, DMI The line shows a bullish bias, but ADX struggles to confirm a strong directional trend.
With the descending channel breaking out of the golden crossover with the 50/200 EMA, buyers may be looking for more in the coming sessions.
A close below the 20 EMA could invalidate the buying bias.This potential target will remain the same as above.
Finally, traders/investors should pay close attention to Bitcoin’s movements and its impact on the broader market in order to be profitable.