CHZ Technical Analysis: Will Buyers Reclaim Authority Over $0.025 Zone?

Despite the higher price rejection at the $0.022 horizontal level, the buyers reclaim the milestone with a bullish reversal from the 20-day EMA. The bullish reversal increases the possibility of a rounding bottom pattern forming in the daily chart with the neckline at the $0.025 supply zone.

Key Points:

Source - TradingView

CHZ Technical Analysis

Chiliz (CHZ) price chart shows a bearish failure to break the dynamic support of the 20-day EMA resulting in a bullish turnaround. The reversal rally accounts for a price jump of more than 10% within the last five days and reclaims the $0.022 horizontal level.

The reversal rally shows the decline in intraday trading volume after the bullish engulfing candle formed on August 30. Nonetheless, the bullish trend shows a high possibility of a rounding bottom pattern starting with the neckline at the $0.025 supply zone.

If the bull cycle takes above the supply zone at $0.025, an uptrend continuation to the $0.030 mark seems inevitable.

Conversely, a sudden increase in selling pressure can result in an early bearish reversal and drop the prices to the $0.18 demand level.

Technical Indicators

The RSI slope maintains a declining trend below the 14-day SMA despite the recent bullish recovery projecting weakness in the underlying bullishness. Furthermore, the fast and slow lines maintain a declining trend in the MACD indicator projecting a weak buying pressure.

Hence the technical indicator doubts the possibility of a rounding bottom pattern forming in the daily chart. Thus, a case of an early bullish reversal in the CHZ prices remains significant.

Resistance Levels: $0.025 and $0.030

Support Levels: $0.020 and $0.018