CHZ could slide another 10% after falling below this critical support level

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author

  • The higher time frame market structure is strongly bearish
  • A bullish order block from August could give the bulls a breather

Chiliz has been trading within a range since late September. It widened from $0.28 to $0.162. The last month saw a big wave of selling and CHZ has lost 45% since November 18th. Earlier in December, a whale unloaded $102 million worth of CHZ.

Read Chiliz’s [CHZ] Price prediction 2023-2024

The loss of the lowest levels in the three-month area was also significant. It reinforced the fact that the bulls will have their work cut out for the next few weeks. Bitcoin’s trend also did not favor the buyers and these risky market conditions made capital preservation important.

Chiliz falls below range lows and $0.154 and further downside is expected

Source: CHZ/USDT on TradingView

On November 10, Chiliz bulls took to heart as the token bounced from the interval low to near the interval highs. Despite the severe panic market, CHZ recorded gains of 73% within ten days from November 9th to November 18th.

These gains translate into weight loss just as quickly. The lows in the area came together with a bullish order block formed on August 13. However, CHZ only managed a small bounce from the lowest ranges. Then the order block was broken and turned into a bearish breaker.

The $0.154 level had been important for the past month. In late November it acted as support, but turned to resistance in December. The lower time frame momentum was also bearish, which meant a drop towards $0.13 could occur.

The $0.13-$0.141 area was a bullish order block from early August, converging with a long-term horizontal level. Therefore, a rise in prices may materialize in this region.

The funding rate is entering positive territory and the CHZ exchange is in a downtrend

Chiliz are quickly falling below four-month lows

Source: Sentiment

On Binance, the funding rate ticked back into positive territory. This suggested that futures traders were positioned bullishly, although this may be a reflection of the lower timeframe sentiment. The long-term structure and trend was bearish.

Meanwhile, the supply on exchanges has decreased since the beginning of November. This coincided with the local peak for Chiliz. The supply calculation showed that the CHZ token was moved out of exchanges and into long-term storage. The age-consumed metric also saw large peaks that coincided with local peaks in price.

In summary, a move to the $0.13-$0.14 range could offer a scalping opportunity. However, until $0.155 and $0.162 are turned into support, buyers need to be cautious.

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