Chiliz (CHZ) price on August 27, 2021: the cryptocurrency caught in a rectangle

Chiliz (CHZ) is a platform that allows for greater interaction between fans and top sportsmen. Its token, the CHZ, allows to participate in the life of a club via numerous votes, make suggestions, make predictions or buy derivatives. This crypto-currency is part of a consequent ecosystem that touches the field of sports from near and far. But what about the evolution of its price?

A consequent stabilization against Bitcoin

Cours de Chiliz face à Bitcoin en unité de temps hebdomadaireCours de Chiliz face à Bitcoin en unité de temps hebdomadaireChiliz price against Bitcoin (1W)

After a powerful rise bringing the CHZ

to the 1,680 satoshis, the latter saw its price fall by about 60%. After a false break of the highest resistance, sellers have been able to take over with lower and lower highs and lows.

Since the flash crash

in May, the CHZ has been in an accumulation rectangle, oscillating between 871 and 616 satoshis.

This pattern is also complemented by resistance or support within the rectangle, depending on the price situation (high or low bound). As the CHZ is currently in the upper bound, a return to the resistance of the rectangle is possible. A break of this level would allow for a possible return to the next technical level: the 990 satoshis.

However, the opposite scenario, with a break of our rectangle support, could take the CHZ to much lower price levels. In this case, the first stop could be around 480/490 satoshis.

Falling asleep to get back on track?

Cours de Chiliz face au dollar en unité de temps hebdomadaireCours de Chiliz face au dollar en unité de temps hebdomadaireChiliz price against the dollar (1W)

After a consistent 70-week build-up, the CHZ made a monstrous surge at the beginning of the year after the break of the high bound, establishing a 4,800% rise in just 6 weeks. After that, CHZ is making much less noise and seems to be stabilizing again.

Cours de Chiliz face au dollar en unité de temps journalièreCours de Chiliz face au dollar en unité de temps journalièreChiliz Price vs. the Dollar (1D)

After its ATH, CHZ price dropped by 80%, making the correction against the dollar more significant than the one against Bitcoin

.

However, after a downtrend until mid-June, this seems to have been reversed with a new low higher than the previous one.

We can see buying pressure sucking liquidity out of the CHZ as it approaches $0.2. The uptrend line shows this phenomenon perfectly.

The accumulation rectangle in which the price was evolving has been broken to the upside. Moreover, the price seems to be returning to this upper bound. If it turns out to be a false breakout, be careful not to anticipate the price movement which could easily return to $0.26 and put you in trouble!

On the other hand, if it is a pullback, it would be positive, as the top of the rectangle would be validated as new support, allowing for a springboard to a bullish move. Thus, different price targets could be considered: $0.44 first, then $0.55.

Whether it’s against Bitcoin or the dollar, Chiliz is in a rectangle, or has just come out of one. Looking for the optimal entry points of this type of pattern is a much more complex art than it seems. The next few days should give us some signals as to where the price might go in the next few weeks. The golden rule is to never anticipate movements if you do not have a rigorous investment or trading plan.