- Chiliz recovery from $0.2 catches momentum as investor sentiment grows.
- CHZ is on the brink of a colossal ascending triangle breakout.
Chiliz bulls have been highly persistent with the push for recovery in the wake of the numbing losses in May. The token secured support at $0.2, allowing bulls to take control. However, the resistance at $0.34 has kept bullish advances on a leash.
Several other higher support levels have ensured that the CHZ sustains the uptrend, notwithstanding the critical barrier at $0.34. In the meantime, Chiliz trades at $0.34 ahead of another significant technical breakout to $0.53.
Chiliz on the verge of a 52% ascending triangle breakout
The Chiliz price is experiencing dwindling trading volume, as seen on the four-hour chart. Nonetheless, its price has made a series of higher lows since the support at $0.2. On the upside, the resistance at $0.34 has remained unshaken, curtailing the bulls’ efforts.
Such market behaviour seemingly formed an ascending triangle on Chiliz four-hour chart. A horizontal line is drawn along with the swing highs, while a rising trendline developed along with the swing lows molds the pattern.
A recent spike in the buying pressure behind cryptocurrency will likely allow bulls to break above the overhead resistance of the x-axis. Here, Chiliz could shoot up nearly 52% based on the ascending triangle formation.
Note that ascending triangles have precise targets determined by measuring the distance between the two highest points of the triangle and adding it to the breakout point.
CHZ/USD four-hour chart
The Relative Strength Index (RSI) shines a light on improving bullish strength. The RSI will likely hit the overbought in the coming sessions and perhaps trigger immense buy orders as speculation mounts. Realize that a break above $0.4 will be a green signal validating the impending ascending triangle breakout.
Looking at the other side of the fence
The TD Sequential indicator may present a sell signal in the upcoming sessions. Realize that bearish call will manifest in a nine candlestick on the four-hour chart. The gesture implies that the bullish momentum is due to fade while sellers prepare to resume action.
CHZ/USD four-hour chart
On the downside, support is expected at the 200 Simple Moving Average (RSI), currently holding at $0.3. If this buyer congestion zone fails to hold, we can anticipate another dip toward $0.2.