CHZ short-term investors looking for gains should watch out for this crucial level
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Chiliz [CHZ], the cryptocurrency designed for sports tokenization, has seen some doubt creep in over the past few weeks. The strong performance in early August and mid-September appeared to have run out of steam.
Bitcoin [BTC] also showed some weakness, as it barely held on to the $19k area. Volatility might or might not be pronounced over the weekend, but 10 October could bring further clarity for BTC’s next move. $19.6k and $19k are short-term significant levels for BTC, and they could have a say on Chiliz sentiments in the days to come.
Here’s AMBCrypto’s Price Prediction for Chiliz [CHZ] in 2022
A previous analysis article on Chiliz showed the $0.24 level to be a solid support level. Yet, it has been broken in the past few days, and the sellers look to be the more dominant force at press time.
Source: CHZ/USDT on TradingView
From a technical standpoint, CHZ had a bearish outlook on the 12-hour chart. It formed a lower low nearly two weeks ago and broke the market structure to shift it to bearish. The $0.24 area saw a bearish order block develop. It was also beside a key level at $0.274, making it a probable area where sellers can cause a strong bearish reaction upon a retest.
This idea was further reinforced by the Relative Strength Index’s (RSI) drop below neutral 50. In fact, in late September the 12-hour RSI retested neutral 50 as resistance and fell to 40. The On-Balance Volume (OBV), too, has been in a downtrend over the past month. Over the same period, the Chaikin Money Flow (CMF) also dipped well below -0.05 to show significant amounts of capital leaving the market, as sellers
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