Chiliz (CHZ) – Underpinning the short-term bullish bias

Chiliz (CHZ) – Underpinning the short-term bullish bias

Posted on Tuesday, August 23 2022 at 8:50 pm GMT+0000

Chiliz’ (CHZ) price has revealed a massive surge in buying pressure and decisively overstepped the August 15th high, opening the door for additional gains.

The Bollinger band expansion is mirroring the recent increase in market volatility, while the technical indicators are approving that buying interest is growing. The KST is improving above its signal line and its neutral mark, the Awesome Oscillator is rising in the positive area and the TSI is sustaining a positive charge above zero. In an additional positive signals, the 20 and 55-period simple moving averages are on the verge of a bullish crossover.

So, the rally is currently expected to get more legs, and the price will likely advance towards the 161.8% Fibonacci extension level of the August 15th – 20th corrective wave at 0.274. Should a more profound upwards move evolve, the 261.8% Fibonacci extension level at 0.335 will step under the radar.

On the other hand, if the upside impetus diminishes in the vicinity of the upper-Bollinger band, the price may drift lower to seek shelter around the simple moving averages currently converging near 0.200. Failing to rebound here could see an extension towards the ascending trendline located just above Saturday’s low of 0.174, while a steeper decline will downgrade the short-term outlook to bearish and stretch towards the 0.147 – 0.141 area.

In brief, the current fast rally underpinned the short-term bullish bias opening the gates for additional advances initially towards 0.274. Only a decisive step below the moving averages could inject some cautious in the market, while a sustainable move beneath 0.174 will ruin the current positive structure.