Binance Completes Chiliz (CHZ) 2.0 Mainnet Integration, How Will Price React?
The Chiliz (CHZ) price appears to indicate a weakening of the long-term downtrend and is trading within a short-term bullish pattern. It is expected to recover in the next few days.
Today, Binance announced that they have completed the integration of Chiliz (CHZ) 2.0 mainnet. This might attract attention to the CHZ token in the coming days.
The Chiliz (CHZ) price started a downtrend since it was rejected at the resistance zone of $0.29 in November 2022. This move caused the price to break below the long-term support zone at $0.088 and confirmed it as resistance during the week of July 10 to 16, 2023 (red arrow).
The CHZ price continued to decline after the rejection, reaching a low of $0.54 last week. Currently, the price action does not show any signs of upward movement.
However, the weekly RSI (Relative Strength Index) shows a positive signal. This indicator has broken above the descending resistance line and confirmed it as support last week. This is a sign that the downtrend has weakened, and a consolidation phase has begun.
This consolidation phase could be the formation of a range or a technical pattern.
If a recovery occurs, the CHZ price could rise to the previous long-term support zone at $0.088.
The daily chart shows that the CHZ price has been trading within a descending parallel channel since August 18. This is a bulish pattern that often leads to a breakout in most cases.
The price is currently in the process of forming a large bullish candle and trading just below the middle line of the channel.
The daily RSI has created a significant bullish divergence and moved above the 50 level. Both are bullish signals, supporting the potential for further upward movement.
Therefore, the CHZ price is likely to break above the middle line of the channel and rise towards the channel resistance at $0.064.
The most likely scenario suggests that the CHZ price will recover in the next few days. The immediate target is $0.064, with further potential to reach $0.088.
This bullish outlook could be invalidated if the price breaks below the recent low of $0.054.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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