The Chiliz, token (CHZ) of the Ethereum blockchain, main token of the Socios application, which makes it possible to support football teams, and even sometimes to influence the decisions of certain teams seems to be on the way to breaking a very important support on a weekly scale. What will give the closing of this evening? Will the CHZ be able to hold its support or will it begin a dive worthy of an Olympic athlete?
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Perfect bearish pullback? Lowest Chiliz close in over a year?
The Chiliz, on a daily scale, seems to be in very bad shape. After having started a downward trend at the end of March, it is currently at 0.1640 dollars. This equates to an almost 50% drop in just over a month. The Socios token price, having already almost quadrupled since last November, looks to be in big trouble for tonight’s close.
Indeed, over the past four days, we have performed a perfect pullback from the current downtrend. The Pullback was made on a zone of strong price reactions at $0.19 as you can see on the curve. Currently a close below the last support would mean the lowest close in over a year. This support is located at 0.1640 dollars. However we will see on the weekly close that the real support is located higher still.
Chiliz’s H4 fences already lower than they should be
Zooming in on the H4 scale the news is unfortunately not better. We can see a close last night that took us to the lowest since February 25th. We obviously find the Pullback visible on a daily scale and can see its accuracy. Obviously, like all the others, the CHZ has followed Bitcoin in its closes.
Already in a downtrend, the last closings of the CHZ brought a trough lower than the previous one, thus confirming the continuation of the current downtrend. This low will most likely induce further decline, initially down to $0.15, the last order block on February 24 before a major dip.
A second bearish pullback in formation? Chiliz fence also important in H1
On an hourly scale, we see that the CHZ recorded a higher low this afternoon than the previous one. This would therefore announce, in the short term, a bullish recovery in the asset. But what is it really? Well even if the CHZ starts to rise again slightly, it is very likely that we will simply validate, with a bearish pullback, the support broken last night.
The closings of the next few hours will give us this information. In the event of a close above $0.1675, we will validate the breakout of a neck line of a double bottom. This would most certainly lead us to seek a price just above the broken H4 support last night and then back down. This will validate a bearish pullback and lead us straight to the block order set out above at $0.15.
The weekly Chiliz: an already critical state at the moment
As discussed in the Daily paragraph, despite support present at $0.1640 on the daily scale, we realize that the Chiliz close tonight may already be below the last weekly support. Failure to hold this support tonight would be catastrophic for the price of the asset. A close as it stands tonight would record the lowest close since February 22, 2021. That is the lowest close in over a year.
Such a close tonight would break the current support and send the Chiliz down to the next support. Support located at… 0.05 dollars. Such a close would therefore cause the Chiliz to correct by around 70%. It will really play out on tonight’s close and you will have to watch the CHZ if you have invested in it. If the close is not good tonight, the most likely scenario in my opinion would be to seek liquidity at $0.11 and then validate a bearish Pullback on our current support before a dip.
The recent fall in Bitcoin has caused many altcoins to correct. But the day’s close of the Chiliz will really determine whether the asset is about to go for a low that we haven’t seen in over a year. We have to keep an eye open this evening and observe the closing which will take place at 2 o’clock in the morning UTC+2. Despite some announcements related to the world of football, the CHZ is clearly at a critical point and plays a decisive game tonight.
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