Chiliz [CHZ] did not see a price dip to $0.05 after making a bearish divergence on the 4-hour chart, as AMBCrypto suggested was possible in a recent report. Instead, the sports-focused blockchain ecosystem token continued to climb higher.
Over the past 24 hours, it has rallied 2.49%, and was up 27.7% over the past week.
In other news, Chiliz announced that it was part of the MiCA Crypto Alliance. The Alliance supported the review and iXBRL conversion of crypto white papers across the Chiliz and fan tokens ecosystem.
Chiliz bulls could see a rally to $0.1 and beyond
In a post on X, crypto trader IncomeSharks observed that the CHZ token’s OBV was explosive during its recent breakout past $0.05. Additionally, this former resistance level has been a nearly year-long supply zone.
The Chiliz price action on the 1-day chart showed strong conviction. The MFI was above 80, and the average trading volume has been steadily rising over the past month.
The $0.064-$0.072 supply zone from February 2025 was the immediate target for the bulls. A breakout past this region would present another buying opportunity for swing traders.
Should traders expect a major price dip?
The A/D indicator suggested a possible bearish divergence. This could yield a minor price dip. A major retracement, such as below the $0.035-$0.040 area, appeared unlikely based on the evidence at hand.
Meanwhile, traders should be wary of short-term volatility. The liquidation map hinted at a potential liquidity hunt toward $0.05.
There were clusters of high-leverage long liquidations below the current market price of $0.058. The cumulative long leverage was also much higher, giving further incentive for CHZ prices to dip lower.
Why traders should stay bullish
The higher timeframe bias would remain bullish after the recent breakout past a key resistance. Investors should beware of short-term volatility and not let it affect their long-term plans.
According to the 1-day structure, a price drop below $0.027 would invalidate the bullish bias on the daily timeframe. The $0.035 and $0.040 support levels should also hinder the sellers.
Final Thoughts
- Chiliz joined the MiCA Crypto Alliance earlier this month, reflecting the growing importance of consistent, standardised regulatory documentation.
- Long-term investors shouldn’t worry about short-term volatility, while swing traders could prepare to buy CHZ in case of a price dip.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
