Chiliz (CHZ) increased by 10.6% in 24 hours with trading volume rising by 160%, indicating a return of buying power and potentially opening up a recovery towards the peak area near $0.065 if this momentum is maintained.
This breakout occurred on March 29, a time that typically sees low volatility, so the signal of 'price increase accompanied by volume increase' is noteworthy. However, CHZ still faces short-term resistance areas and FOMO risk if the price is rejected around important technical levels.
MAIN CONTENT
CHZ increased by 10.6%/24 hours, daily volume increased by 160%, significantly improving momentum.
The 1D trend remains positive, but the range of 0.04 and 0.043–0.045 USD may block the upward momentum.
A cautious entry scenario is to wait for a pullback to 0.034–0.036 USD or wait for a breakout and then retest.
CHZ signals a recovery thanks to a strong price increase accompanied by explosive volume.
CHZ increased by 10.6% in 24 hours, and the daily trading volume rose by 160%, while momentum indicators improved, suggesting the possibility of a continuation of the recovery if the capital flow is maintained.
Price movements indicate a 'volume accompanied' increase, which is often seen as confirming market interest in the short term. The occurrence on 29/3, when volatility and volume are usually quieter, makes this rebound worth monitoring for the next week.
In the past 24 hours, the RSI has risen to 60, reflecting a stronger upward momentum compared to previous periods. At the same time, the volume increase has created a significant improvement on OBV, implying that the accumulation force may be returning, rather than just a price pull lacking liquidity.
The daily structure of CHZ still leans towards bullish, but the reaction at support has not been 'explosive' yet.
On the 1D chart, CHZ has rebounded to the long-term supply range of 0.055–0.065 USD and then adjusted to 0.035 USD, coinciding with the 78.6% Fibonacci retracement level, which is an important support area but initially did not create an immediate strong upward reaction.
Since the beginning of the year, the price structure has generally been consolidating, as the previous surge brought CHZ to the supply range of 0.055–0.065 USD. After that, the price pulled back to 0.035 USD, described as the 78.6% Fibonacci retracement level of the previous bullish momentum.
Notably, the retest of this important support did not yield an immediate upward reaction. However, over time, the buying side still pressured the price back up, indicating that the buying force is more 'sustainable' than a single technical rebound.
In the past month, OBV has been trending upwards, but the risk lies in the fact that the trading volume is mostly below the 20-day average. At the same time, RSI has not remained stable above the neutral threshold of 50 for about six weeks, making the previous bullish signals lack consensus from momentum and liquidity.
CHZ may head back to 0.065 USD if momentum is sustained, but the macro context and Bitcoin remain an unknown.
If the current momentum is maintained, CHZ could recover to the range of 0.065 USD; however, bearish sentiment surrounding Bitcoin and the macro 'fear' environment may reduce the likelihood of a sustainable breakout.
The noteworthy recovery target of the upward momentum is the swing high area near 0.065 USD. This is also referred to as a 'swing high', so there may be profit-taking pressure or hanging supply if the price returns to this area.
However, the altcoin market is often strongly influenced by the overall sentiment surrounding Bitcoin. When the sentiment towards Bitcoin is described as 'extremely bearish' and macro conditions have a 'fear' tone, the performance of CHZ may not only depend on its inherent technicals but also on the overall stability of the crypto market.
No FOMO: the ranges of 0.04 and 0.043–0.045 USD may block CHZ's upward momentum.
Despite the rapid increase, the CHZ buying side has not regained the 0.04 USD mark, and the range of 0.043–0.045 USD (the peak of the upward channel) may act as resistance causing the price to be rejected, so avoid FOMO when the price rushes near these levels.
In the past 24 hours of upward momentum, CHZ bulls have still not regained the 0.04 USD mark, which was the local peak formed in early March. This indicates that the market still needs more confirmation if it wants to sustainably reverse in the short term.
Despite the rejection, OBV has surpassed the local peaks, and RSI has entered the overbought zone. This is both a signal of strength and a warning that the upward momentum may be 'hot' and prone to corrections if resistance is encountered.
An upward price channel has formed, with the channel peak around 0.043–0.045 USD. If CHZ breaks through 0.04 USD, this channel peak may still act as a direct resistance against the upward momentum.
Trading strategy by zone: take profit when in position, wait for a pullback to 0.034–0.036 USD if you miss the momentum.
Traders who have previously bought may consider taking profits according to the momentum, while those who missed the wave should wait for the price to pull back to 0.034–0.036 USD or wait for a breakout and then retest before considering opening a long position.
With existing long positions, the suggested strategy is to prioritize risk management and realize profits when the market rises quickly in a short time. This is particularly suitable when the RSI has entered the overbought zone and the price has not reclaimed 0.04 USD.
For those who missed the upward momentum, the range of 0.034–0.036 USD is mentioned as a potential area to wait for the price to pull back to find a buying opportunity. Additionally, if 0.04 USD or the range of 0.043–0.045 USD is broken and successfully retested, that could be a better confirmation scenario to consider joining.
Frequently Asked Questions
What do the 10.6% increase and 160% volume increase of CHZ indicate?
This is a signal that the capital flow and trading demand are increasing strongly in the short term. When the price rises along with explosive volume, the chance of an upward momentum being 'powerful' is usually higher than during low liquidity increases, but it still needs to monitor the ability to hold after the breakout.
Why is the 0.04 USD mark important for CHZ?
0.04 USD is the local peak established earlier in March and is the level that the buying side has not reclaimed after the rapid increase. If the price is continuously rejected around this area, the risk of correction increases; if it breaks above and holds above this level, the recovery signal will be clearer.
What does the range of 0.043–0.045 USD signify?
This is the peak area of an upward channel, which may act as technical resistance. As the price approaches the range of 0.043–0.045 USD, the market may encounter selling pressure or profit-taking, causing the upward momentum to slow down or reverse in the short term if there is no additional momentum.
When should one consider buying CHZ according to the analysis content?
A cautious option is to wait for the price to pull back to the range of 0.034–0.036 USD and then look for confirmation signals. Another option is to wait for CHZ to break the resistance levels (such as 0.04 or 0.043–0.045 USD) and then retest as support before considering opening a position.
Source: https://tintucbitcoin.com/chiliz-tang-10-moc-004-usd-xa/
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