Chiliz CHZ has climbed over 70% from the June 9 low to today’s price high in the run-up to the European Cup, one of the premier soccer events in the world. The noteworthy CHZ rally has captured the attention of the cryptocurrency markets and has been applauded by the Chiliz CHZ faithful. Still, a trifecta of resistance has cooled the rally and puts price forecasts of a continuation on hold.
To review, Chiliz's price crashed over 80% from the March 12 high price of $0.975 to the May 19 low of $0.163, and it was highlighted by a 60% drop on May 19. However, Chiliz CHZ rebounded over 100% from the May 19 low to May 20 high but remained below the key resistance level pattern originating with the April 7 low at $0.364.
Since the May 19 low, Chiliz CHZ price has been unable to rally above the $0.364 level, preferring to move between the level and the 200-day SMA. Today, CHZ price attempted to conquer the distinguished resistance but fell short, constrained by the April declining trend line at price of $0.351 and intimidated by the declining 50-day SMA at $0.377.
Chiliz CHZ now encounters a trifecta of technical resistance covering the range of $0.351 to $0.377, and it could prevent the European Cup hype from driving CHZ price higher moving forward.
It would take a close above the 50-day SMA at a price of $0.377 to void the cautious outlook for the sports and entertainment token.
A downside support level is formalized by the near intersection of the 78.6% retracement level of the February-March rally at price of $0.233 with the 200-day SMA at $0.226. Any weakness beyond that support raises the probability that Chiliz price will test the May 19 and 23 lows at price of $0.163 and $0.164, respectively.
If Chiliz price does close above the 50-day SMA, it will be quickly met with resistance at the 38.2% Fibonacci retracement at a price of $0.473 reinforced with heavy price congestion from mid-May.
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