Chiliz (CHZ): Price Action Stalls Before the Breakout
09 Aug 2020 #Chiliz
Chiliz (CHZ) must be of interest to all retail traders because this is virtually the only altcoin that was welcomed in the sports industry, specifically football and esports, that boasts both immense funding and global following, which is especially relevant to football.
CHZ represents one of the most dynamically developing companies, called Socios, and ecosystems in the blockchain space that already has a mobile application with numerous downloads, the blockchain-enabled fan tokens of the most accoladed football teams in the world, as well as a proprietary exchange platform Chiliz.net that is devoted almost solely to these digital assets.
Barcelona FC has been tokenized by Chiliz, causes the price growth
In the latest developments, Socios had carried out the sale of fan tokens of the iconic club Barcelona FC (ticker - BAR) that got sold out like hotcakes and brought the club $1.3 million in less than a couple of hours. Besides, the renewal of sports tournaments across the globe, especially the football season in Europe, served as an additional driver for the price that made another push to $0.015 but was ultimately rejected by the sellers.
CHZ historical chart
In broad terms, we see Chiliz as one of the most promising mid-ranked altcoins as it has occupied a great niche that offers tremendous growth potential. Certainly, the progress of CHZ was overshadowed by the hype around the rise of decentralized finance (DeFi) that has literally revived the altcoin market, but in the long run, this coin is too good to fail, especially given that esports and its community, which is probably the most open-minded towards cryptocurrencies, is developing in leaps and bounds. The all-time high at $0.023 is only 46% away from the present price at $0.012 (4.5% decrease over the past 24 hours).
However, do not expect any mind-boggling upswing on the part of CHZ because, as you can see on the all-time chart above, the bulls have proven to be incapable of going past the macro resistance at $0.015, and now appears to be inclined to making lower highs while persistently registering higher lows that make for the symmetrical triangle pattern, the resolution of which could well go both ways, mainly because of the forcefulness of the bears near the mentioned resistance. But given that Bitcoin, the main market driver, has finally shaken off its blue and tested $12,000, Chiliz may well follow suit and break the triangle to the upside.
CHZ is constricted between three price levels
It appears that the symmetrical triangle is one of CHZ’s favorite patterns since we also see it emerging on the daily time frame, after yet another rejection at $0.15.
1-day CHZ/USDT chart
We reckon that Chiliz will eventually break this formation to the upside, mainly on the basis of how obedient the price is of the support level at $0.0111, which signified the presence of consensus between the market participants about maintaining the price flow above that level.
Over the next 10 to 14 days, CHZ is going to consolidate around the third important level at $0.013 that serves as an axis of this entire structure. Given that MACD refused to descend lower into the bearish territory, the bulls must be having the upper hand in this market, so traders should arm themselves with patience and wait for the breakout above $0.014 to take the first long position on CHZ.
