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Why Chiliz (CHZ) Price Held Steady Despite Rejection from Long-Term Resistance: Explained

The price of Chiliz (CHZ) has been rejected by long-term resistance but has not shown any decisive bearish signals. It is likely to find support at the nearest horizontal support area and recover.

Long-Term Resistance Area

Chiliz’s (CHZ) uptrend was halted by the $0.15 resistance area during the week from February 26 to March 3, 2024 (red arrows). However, the decline in the following weeks formed bullish pinbar candles with very long lower wicks, confirming the $0.115 area as support (2 green arrows). This indicates strong buying pressure at lower levels.

The $0.115 support area became stronger with the presence of the 20-week EMA (Exponential Moving Average).

The 20-week EMA has played an important role in CHZ’s trend (marked points on the chart). Therefore, the bulls are likely to defend this confluence area strongly.

However, the weekly RSI (Relative Strength Index) has been rejected by the 70 level (yellow arrow) and sloping downwards, indicating that the bears are attempting to regain control.

Therefore, CHZ’s downward momentum may only stop when the price reaches the $0.115 support area.

CHZ/USDT weekly chart. Source: TradingView

Short-Term Outlook

The 4-hour chart shows that CHZ has broken down below the important horizontal support area for the short-term trend at $0.14 and confirmed it as resistance yesterday (red arrow).

The 4-hour RSI has crossed below 30 and is sloping downwards, indicating that the bears are controlling the short-term price action.

Therefore, the 4-hour chart supports the possibility of CHZ price declining towards the $0.115 support area on the weekly timeframe.

CHZ/USDT 4-hourly chart. Source: TradingView

Conclusion

The most likely scenario suggests that the CHZ price will decline to the $0.115 support area in the coming days. However, the bulls will defend this area strongly, and the price may recover thereafter.

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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