Sport, this field that tends to bring together millions of people around the world, is also found in the sphere of cryptocurrencies! You may be familiar with the Socios app which allows users to support soccer teams in a number of ways. Sometimes you can even influence the decisions of the team, as well as some players. Interesting, right?
The Chiliz (CHZ), developed on the Ethereum blockchain, is the main token of the Socios app. It provides access to various benefits, especially since it is the only way to acquire fan tokens. However, the CHZ appears to be struggling to reach old heights. Is it on the sidelines? Let’s go straight to our charts to see a little more clearly.
This analysis of the CHZ is offered in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals
An asset that must not give up on a weekly scale
After being repeatedly confronted with a resistance that is around $ 0.55, the value of the CHZ fell sharply, returning quite quickly to $ 0.16. At its lowest point in May 2021, the asset managed to hold above this price to build weekly support that is still relevant. Conversely, the price is also moving below a resistance located at $ 0.33. Since December, CHZ has not been able to pass this level.
It is therefore possible to observe, on a weekly scale, an evolution of the asset between support and resistance. By oscillating between these two levels for several weeks, the price is in a lateralization situation. Furthermore, we can add to the analysis the observation of a pivot zone, located at $ 0.23, which plays a role of support or resistance. In the event that the price is below the pivot zone, the latter acts as a resistance. Conversely, the pivot zone acts as a support when the price is above. Indeed, this was mostly the case when looking at the price curve in the past.
So, on a weekly scale, here are the key levels you need to keep an eye on on the asset. Pay attention to the price action on the pivot zone. Theoretically, if it stays above, the CHZ has a better chance of rising again. However, a breakout will increase the chances of a return to weekly support. Also, I invite you to strongly monitor the weekly support and resistance. When the asset sooner or later breaks one of these levels, it is undoubtedly evident that a strong movement will occur in the following weeks. However, let’s not stop there. Let’s now move on to the daily scale to analyze the CHZ in more detail.
What are the scenarios envisaged for the CHZ?
On a daily scale, the situation is mixed with regard to the current pivot zone. Do we have a bearish breakout with a pullback before returning to the downside? Or will we see bullish reintegration again at higher price levels? Yesterday the CHZ stopped at $ 0.21, which was a resistance level for a short time. In this context, the bullish reintegration of the pivot zone would be positive as it would allow the asset to record a higher low than the previous one, theoretically allowing to preserve the bullish momentum in the short term.
In this context, several objectives can be assumed:
- A return to $ 0.27, a technical level that served as support and resistance.
- Continuity down to $ 0.30, the resistance the price is facing on a daily scale.
- The 0.33 dollar, the weekly resistance which is an essential level to resume hoping for an important change in dynamics.
Conversely, if we address the loss of the pivot zone with a weekly confirmation, we can set several bearish targets which are as follows:
- The 0.21 dollar, a level that corresponded to a resistance, now allowing the CHZ to rebound.
- A return to the daily pivot zone which stands at $ 0.19. Here it will be necessary to expect a buying reaction.
- A loss of the above-mentioned area will signal a return to the weekly support at $ 0.164.
We are already at the end of this CHZ analysis! After studying the weekly and daily scale, we can see that the asset is at an important level that it shouldn’t lose. Depending on the loss or recovery of the weekly pivot zone, the scenario will be totally different, but you will be ready by now you have all the levels in mind to watch. It is true that a very clear stance for the next few weeks is complex given the current market situation. Furthermore, the European Central Bank will soon have the opportunity to comment on its interest rates. Therefore, volatility is likely to occur in the markets. So be careful of your positions by managing your risk in the best way possible!
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