Chiliz (CHZ) rose 31.2% in January. However, the rally was not a new year phenomenon like most other altcoins. In fact, this dates back to the 25% one-day gain made on Friday, December 19th.
This move broke the local resistance zone of $0.035, and CHZ bulls have not looked back since. At the time of writing, another much longer-term supply zone had turned into support – a sign that Chiliz buyers were only warming up.
Chiliz back above key $0.05 multi-month resistance
Source: CHZ/USDT on TradingView
Chiliz bulls have made notable progress in recent weeks. The 3-day time frame showed that the $0.05 resistance zone, which CHZ had failed to breach for most of 2025, was finally under bullish control at press time.
The gains were accompanied by strong buying pressure and increased demand. The D3 CMF rose to +0.17 to reflect strong capital inflows. OBV has also surpassed its February 2025 highs.
This could be a sign of serious intent from the bulls. Therefore, additional gains could be very likely. To the north, the next price targets would be $0.067 and $0.1.
Is there a strong bearish argument in favor of CHZ?
In short, no. From a technical perspective, the Chiliz token appears to have strong bullish credentials. At the time of writing, volumes were strong, key long-term resistances were broken, and Open Interest had nearly tripled over the past three weeks.
A downward trend in the price of Bitcoin (BTC), however, could affect sentiment in the altcoin market and stop the progress of Chiliz bulls.
Call to Action from Traders – Buy the Breakout
Source: CHZ/USDT on TradingView
Breaking above $0.05 could be a buying opportunity. However, some short-term patience may be required. The 4-hour chart revealed a bearish divergence between the price and the MFI indicator. This could experience a brief setback.
A pullback to the $0.0460 to $0.0495 area would likely result in a bullish reaction. This zone presented an imbalance over the S4 period. This area also has a confluence with the 50-period moving average.
Given the importance of the $0.05 resistance over the past ten months, investors and swing traders can go long with a wider stop-loss around $0.0410 to $0.0428. A move from here to $0.10 will still be likely.
Final Thoughts
- Chiliz’s breakout beyond $0.05 is a bullish development likely to generate more demand in the market.
- The $0.10 level could be an achievable price target for the token in the coming weeks, despite the bearish divergence on the 4-hour chart.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
