Chiliz (CHZ) – Adopting a medium-term sideways demeanorPosted on Wednesday, March 16 2022 at 8:26 pm GMT+0000
The sports and entertainment cryptocurrency Chiliz (CHZ) has been trapped in a bounded range for the last two months, forming a neutral rectangle pattern with 0.248 and 0.159 boundaries.
Noteworthy is that even though a rectangle pattern is usually considered as a continuation pattern, it could also act as a reversal formation.
The indecision among traders is also being mirrored in the squeezed Bollinger bands, which is suggesting that a surge in volatility will soon evolve, triggering a large directional move. Oscillators, however, continue to remain skewed to the downside. The Ultimate Oscillator is gliding below its moving average in the bearish territory, while the ROC is pushing aggressively south below zero.
In the wake of intensified selling pressures, the price will dive towards the lower-Bollinger band at 0.169, and the neighboring base of the rectangle at 0.159. Should this crucial bar happen to give way, traders may look for support near 0.076, which consists of the downside target of the pattern and encapsulates an inside swing high from February 2021.
If buyers, however, take the reins and manage to conquer the upper-Bollinger band and the upper limit of the range at 0.220 and 0.248 respectively, they could shift their focus towards the January 12th high at 0.281. Next, they will gain further confidence to propel towards the upside target of the rectangle at 0.331, overlapping with the January 5th high.
In brief, Chiliz is adopting a medium-term sideways demeanor. A drop below 0.159 will result in further depreciation, while a step above 0.248 will motivate additional buying actions.