Chiliz (CHZ) is up 10.6% in the past 24 hours and has seen its daily trading volume surge 160%.
The sharp price rally on March 29, when volume and price movements are generally subdued, indicates the possibility of a strong uptrend for the coming week.
On the daily chart, the structure presented by CHZ since the beginning of the year was rather encouraging. After a rally towards the long-term supply zone between $0.055 and $0.065, CHZ returned to the $0.035 level.
This is the 78.6% Fibonacci retracement level based on the impulsive move from earlier this year. The retest of this crucial support did not yield an immediate, bullish response.
Buyers have, over time, pushed prices up again.
OBV was on the rise over the past month, but there was a concern here. Trading volume was mostly below the 20-day average. Meanwhile, the RSI has also not settled above the neutral level 50 over the past six weeks.
This has changed in the last 24 hours. The RSI reached 60 and rising volumes led to a good rise in OBV.
If it holds, CHZ could become one of the best performing assets as it recovers towards the $0.065 high. With extremely pessimistic sentiment around Bitcoin (BTC) and frightening macroeconomic conditions, it remains to be seen whether Chiliz can succeed.
Call to Action from Traders – Don’t Participate in FOMO on This Rally
Despite rapid gains over the past 24 hours, CHZ bulls have been unable to reclaim the local high of $0.04 set earlier in March. The OBV broke above local highs and the RSI reached overbought territory, despite the rejection.
An ascending channel (purple) has formed and its highs are located in the $0.043 to $0.045 area. Therefore, this channel top would oppose the altcoin’s rally if CHZ could break above $0.04.
Swing traders already in a long position may look to take profits. Those who missed the move can wait for a retracement between $0.034 and $0.036 before considering a long position.
Final summary
- CHZ’s rally over the past 24 hours has reinforced the altcoin’s long-term bullish structure.
- In the coming days, the $0.04 and $0.043 to $0.045 levels would likely stop any further price rises. If breached and retested, this could be a buying opportunity.
