Is Chiliz CHZ Support and Resistance About To Start New Bull Run?
CHZ (Chiliz) is currently at support and appears to be trying to bounce back. What are the chances it will succeed? Let’s find out!
The details: CHZ has lost almost 90% of its value this year from its all-time high of $0.95. While this may sound like a lot, it is pretty usual in the crypto market, especially when it comes to altcoins. Even Bitcoin lost around 86% of its value at one point.
Chiliz (CHZ) Bull Run Ahead?
CHZ is currently priced at $0.11 as of 2023-01-06 and is very close to its 2022 low of $0.080, where we find the major support level. As you probably already know, support and resistance levels are not exact price points but price areas with some room for interpretation.
If a cryptocurrency has bounced once from $0.085, the next time, it can also bounce from $0.080.
In this current swing low, CHZ has reached $0.0970, which is in line with the support level, which ranges (more or less) from $0.10 to $0.09.
CHZ is already showing signs of making a V-shaped recovery since it has started pushing up quickly. The next stop is the 25 Exponential Moving Average (EMA) which has been a pretty accurate mobile support and resistance. Therefore we need a break and close above the 25 EMA before the rally can continue.
If the Bull Run commences, the next resistance level stands between $0.26 and $0.29.
This is around 150% from the current price level. We have a minor resistance around $0.16 which is 40% higher than the current price, making the potential profit for this setup decent.
What is Support and resistance trading?
In financial markets, support and resistance are terms used to describe the levels at which a security's price tends to find resistance as it rises, and support as it falls. These levels are characterized by a high volume of trades and can be used as potential indicators of future price movements.
In support and resistance trading, traders may look for opportunities to buy a security when it is approaching a level of support, or to sell a security when it is approaching a level of resistance.
The idea is that as the security's price approaches one of these levels, the likelihood of a price reversal increases.
It's important to note that support and resistance levels are not exact prices, and that the security's price may not necessarily bounce off these levels. Instead, they should be seen as areas where the price is more likely to experience resistance or support.
What is Chiliz (CHZ)?
Chiliz (CHZ) is a cryptocurrency that is used to power the Socios.com platform. Socios.com is a fan engagement platform that allows sports teams and other organizations to create and manage their own branded tokens.
These tokens can be used by fans to participate in various forms of engagement with their favorite teams, such as voting in polls, participating in quizzes, and accessing exclusive merchandise and experiences.
CHZ is the native cryptocurrency of the Socios.com platform and is used as a means of exchange for the various fan tokens that are issued on the platform. It is built on the Ethereum blockchain and is designed to be fast, secure, and scalable.
Looking Ahead: While many signs point to CHZ starting its bull run, we still need to be weary as CHZ has shown signs that it was going to make a quick recovery in May 2022 as well, before plunging back down and finally recovering in July.
Therefore it may not be the best idea to enter with all of your funds but rather a portion of it and enter more later on.
