TradeCityPro | CHZ: The Sports Enthusiast's Crypto Play👋 Welcome to TradeCityPro!
In this analysis, I want to review the CHZ coin. Chiliz is a sports project within crypto that creates fan tokens for world-famous clubs.
🔍 For example, clubs like Atlético Madrid, Barcelona, Manchester City, Juventus, and others use this project to create their fan tokens, and fans of these teams can support their favorite team by purchasing these tokens. Currently, the CHZ coin has a market cap of $499 million and is ranked 122 on CoinMarketCap.
📅 Weekly Timeframe
As you can see in the weekly timeframe, after the sharp price pump that occurred in 2021, the price reached the area of 0.6824. After reaching this area, the price changed direction and underwent a downward trend down to the support at 0.0499, experiencing more than a 90% decline.
🔽 In this downward trend, we observe a descending channel where the price has reacted well to both the channel’s ceiling and its floor. In the latest upward movement, as you can see, the price did not reach the bottom of the box, and if you notice, each time in the previous two upward and downward movements within this channel, the upward movements had more volume than the downward ones, indicating the buyers' strength.
⚡️ Currently, the most important support for this coin is at 0.0499, which is near this area. If this area is broken, we might witness a price drop to the channel's bottom or even to the next support area at 0.0192.
🚀 On the other hand, if this support can push the price back up and the price also breaks out of the downward channel, the channel's trigger area will be 0.1545, which is also a very important resistance. If this trigger is broken, we can say that the price’s upward trend will start, and the price can move towards higher targets.
💥 The price targets, if this trigger is activated, might be the area at 0.2837, which is very important, and the ATH area at 0.6824.
📅 Daily Timeframe
Moving on to the daily timeframe, we can see more details of the price movement within the range box.
✨ As you observe, the price has had an upward trend up to the area of 0.1333 and hasn’t reached the top of the box, which itself indicates the weakness in the buyers' power. After changing direction, it engulfed 100% of the previous upward leg.
✅ Currently, there is a very important support area and a significant demand zone at the bottom of the box, where the price has entered, and we need to see how it will react to this area. I have marked this area on the chart for you.
🔑 We will confirm the change in direction and the onset of an upward price trend if the 0.0641 level is broken, which would activate a Double Bottom pattern. However, keep in mind that there is currently no Double Bottom, and if the price is supported from this range and moves upward again, a Double Bottom pattern would occur if the 0.0641 level is broken.
📈 So be careful not to preempt this pattern. The main triggers for buying are areas 0.1333 and 0.1659, which if broken, could see the price move towards the weekly targets I specified, such as 0.2837. However, if the supply area is broken and the trend turns downward, the price could move downwards, and the next downward leg could occur, with targets for this scenario also specified in the weekly timeframe.
📊 The volume of this coin in the daily timeframe, as you can see, does not display well and is not very good. For this reason, I am not going to lower timeframes to find futures triggers because coins with low volume and inaccurate volume data are not suitable for trading in futures. Therefore, I suggest not trading this coin in futures.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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