Chiliz’s (CHZ) – Bearish risks persistPosted on Wednesday, February 23 2022 at 8:40 pm GMT+0000
Chiliz’s (CHZ) latest positive thrust near the nine-month trough of 0.16 is still some distance below a tough resistance zone shaped by the descending trendline stretched from the November 30th top and the mid-Bollinger band.
The technical indicators keep feeding the sellers with some optimism, as the momentum indicator is falling below its moving average in the bearish territory, and the True Strength Indicator is heading south below the zero mark, both promoting a negative bias. The congestion of the Bollinger bands is signifying that a possible volatility expansion in the price may soon take place.
If negative pressures endure, a push-down could encounter some friction around the nearby lower-Bollinger band, currently at 0.17 residing marginally above the January 24th low of 0.16. Should this floor collapses, the price will then aim for the 161.8% Fibonacci extension level of the two weeks rally from January 24 to February 10 at 0.10.
On the other hand, if buyers make a strong comeback, they could propel the price to challenge the 0.21 handle where the mid-Bollinger band and the descending trendline meet. Overstepping these obstacles, they would need to muster a more profound upside force to conquer the upper-Bollinger band and the February 10th peak, both lying at 0.25. Higher, the spotlight will shift to the January 5th high at 0.33.
In brief, bearish risks persist despite the latest attempts for a rebound and they are expected to strengthen if the price closes clearly below 0.16.