Chiliz is getting a lot of positive feedback from the demand zone, but can it keep climbing?

Chiliz announced that FTX users who possessed CHZ might receive up to $10,000 in compensation. Their choice to allocate 38 million CHZ tokens to a public address made this possible. Alexandre Dreyfus, the founder of the sports-based blockchain company, pointed out that the relief was just for retail investors.

This was a thoughtful endeavour that users will remember. Chiliz hit major resistance on the price charts near $0.28. Meanwhile, in the last three months, demand has been strong at $0.2 and $0.16.


Potential range formation for traders to benefit from

Chiliz sees a hugely positive reaction from demand zone but can it continue its ascent?

Source: CHZ/USDT on TradingView

Highlighted in blue, Chiliz appeared to form a range from $0.28 to $0.163, with the midpoint at $0.221. The extremes of the range have not been tested frequently, for the $0.18 level as well as the $0.264 level have both offered significant opposition to bears and bulls respectively.

In the past ten days from 7 November, CHZ has dropped like a rock from above-the-range highs to below-the-range lows. At the time of writing the price was back above the mid-point of the range. This highlighted a huge amount of volatility.

Yet, during this time the OBV has been on the rise as it made a series of higher lows. On the other hand, the RSI did not show any such bullish inclination. It did recover to climb above neutral 50, but the RSI did not yet signal strong bullish momentum.

The formation of the range alongside the bearish order block from 7 November near the range highs meant that a move to $0.28 would more likely offer a selling opportunity than a buying one.

Active addresses on the rise while supply on exchanges falls

Since 6 November, the active address count (30-day) has been on the rise. This showed increased participation from users and could be indicative of positive sentiment. The weighted sentiment metric was also in positive territory and suggested that the outlook from social media was favorable for CHZ.

On-chain metrics also showed the percentage of supply on exchanges has been in decline throughout November. Thus, even after the sharp drop in prices, CHZ tokens have been moved off of exchanges. This indicated the possibility of an accumulation from larger market participants.

Could the bullish metrics shown above counteract the technical findings? Or will CHZ bulls run into a brick wall near the $0.26-$0.28 region?

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