- Chiliz eyes potential breakout on overcoming the 50 SMA crucial resistance.
- The profit or loss on-chain model reveals that CHZ is back in the buy zone.
- Chiliz transaction history points at ongoing consolidation lasting longer.
Chiliz battles two critical resistance levels, which, if overcome, would see the price rally toward $1. Consolidation dominated the market in the wake of the barrier at the record high of $0.92. As the sideways trading nears an end, investor sentiment is bound to improve the liftoff's support toward $1.
Chiliz Bulls Wake Up Ahead of Breakout
At the time of writing, CHZ dodders at $0.45. Its immediate upside has been capped by the descending parallel channel's upper limit and the 50 Simple Moving Average (SMA) on the four-hour chart. On the downside, support has been accorded to the digital asset by the channel's middle boundary.
It is essential to realize that the Relative Strength Index (RS) has recently bounced off the oversold region and heads toward the midline. If the gap to the overbought shrinks, Chiliz's breakout eyeing $1 would start to materialize.
CHZ/USD Four-Hour Chart
The profit or loss margin of CHZ holders is highlighted using the market value realized value (MVRV) on-chain model. According to Santiment, this metric follows the average profit or loss of the holders of CHZ tokens moved over the last 30-days and compared to the price when each token previously moved.
A low MVRV such as -10.7% insinuates the majority of the holders are at a loss. Note that when investors are at a loss or have not broken even, they will not be willing to sell. This significantly reduces the overhead pressure. Simultaneously, the low ratio suggests that Chiliz is back in a buy zone and is likely to start a recovery phase.
Chiliz MVRV Chart
Chiliz Bearish Outlook
According to the 24-hour active addresses on-chain metric, Chiliz recovery would be difficult, primarily due to a massive drop in the level of interaction on the network. Currently, only 1,883 addresses are actively transacting on the Chiliz network compared to a 30-day high of 6,408.
Chiliz Active Addresses
The appreciable drop implies that speculation has decreased significantly, making sustaining the uptrend a gruesome exercise. Therefore, unless investors begin to warm up to the token, either consolidation will prevail, or the downtrend within the descending parallel channel would extend further.