Chiliz was rejected at $0.1275 in December and continued to fall to a local low of $0.097 in late December. Chiliz has steadily ascended since then. The charts demonstrated that additional gains are possible.
The recent strong gains on lower timeframes demonstrated that CHZ remained a popular token among whales. Even though the token’s velocity has recently increased, the supply held by top exchanges has decreased. Is this an early indication of a local top, or can Chiliz bulls break out past the $0.13 resistance?
Chiliz could push further north but those gains could get curtailed near $0.148
On the daily timeframe, the market structure took a bullish hue after breaking above the $0.116 mark. However, the selling pressure since mid-November has been immense. Therefore it was hard to say the longer timeframe bias has flipped bullish even though the bearish structure was broken.
To the north, a fair value gap from mid-December has already seen a strong bearish reaction. This imbalance has not been filled yet, and there was also a long-term level of significance at $0.131 which can act as resistance.
Higher still lay a bearish order block on the daily timeframe which extended from $0.1325 to $0.1485. At the time of writing, the short-term bias was bullish.
It was likely that CHZ would push upward to $0.132 at least. Whether CHZ can push higher remains to be seen. Meanwhile, a pullback to $0.113 before a move above $0.131 can offer a buying opportunity.
The exchange flow balance did not show large deposits in recent days
The 90-day MVRV ratio has steadily climbed since late December to show that the token was less and less undervalued. Soon it could crossover into positive territory where holders will look to book a profit. In the past two weeks, the social dominance metric also receded to stand near the six-month lows.
The exchange flow balance did not show strong inflows like it did in mid-September. This could signal a local top. There was a strong wave of withdrawals on 5 January, when CHZ traded at $0.116.
This was followed by a pullback to $0.105, and inflows to exchanges were almost as high as the aforementioned outflow. In conclusion, the lack of strong exchange flow meant the current near-term uptrend for CHZ can continue.