Sports, this field that tends to bring together millions of people around the world is even in the cryptocurrency space! You may be familiar with the Socios app that allows users to support soccer teams in various ways. Sometimes you can even influence the decisions of the team, as well as some players. Fun, isn’t it?
Chiliz (CHZ), developed on the Ethereum blockchain, is the Socios app token. It provides access to many advantages, especially because it is the only way to get fan codes. However, CHZ appears to be struggling to reach old heights. Is it on the sidelines? Let’s go straight to our charts to see more clearly.
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An asset that you should never give up on a weekly scale
After encountering resistance several times around $0.55, the value of CHZ declined sharply, quickly returning to $0.16. Coinciding with the low point in May 2021, the asset managed to hold above this price in order to build a still decent weekly support. Conversely, the price is also moving below the resistance located at $0.33. Since December, CHZ has not been able to break above this level.
So you can see, on a weekly scale, the evolution of the asset between support and resistance. The price oscillates between these two levels for several weeks, and the price is in a horizontal position. In addition, we can add to the analysis the observation of the pivotal area, located at $0.23, which plays the role of support or resistance. In the event that the price falls below the pivotal zone, the latter acts as resistance. On the contrary, the pivot zone acts as a support when the price is higher. In fact, this was mostly the case if you looked at the price curve in the past.
So, on a weekly scale, here are the key levels you need to watch on the asset. Pay attention to the price action in the pivotal zone. In theory, if it stays higher, CHZ has a better chance of rising again. However, a breakout will increase the chances of a return to the weekly support. In addition, I invite you to monitor weekly support and resistance vigorously. When sooner or later the asset breaks one of these levels, it is undoubtedly clear that a strong movement will occur in the following weeks. However, let’s not stop there. Let’s now turn to the daily scale of CHZ analysis in more detail.
What are the expected scenarios for CHZ?
On the daily scale, the situation is mixed with respect to the current pivotal area. Do we have a downside breakout with a pullback before going back down? Or will we see bullish consolidation return to higher price levels? Yesterday, the Swiss Franc settled at $0.21, a level that for a short time was resistance. In this context, the bullish consolidation of the pivot zone will be positive as it will allow the asset to record a higher low than the previous one, which theoretically allows for the upside momentum to be maintained in the short term.
In this context, various objectives can be envisaged:
- Returning to $0.27, a technical level that acted as support and resistance.
- A continuation up to $0.30, which is the resistance that the price is facing on the daily scale.
- $0.33, the weekly resistance which is a key level to resume hope for a major change in the dynamics.
Conversely, if we encounter the loss of the pivot zone with weekly confirmation, we can set different bearish targets as follows:
- $0.21, the level that corresponds to the resistance, is now allowing the Swiss Franc to rebound.
- Back to the daily pivot point of $0.19. Here it will be necessary to anticipate a buying reaction.
- The aforementioned area loss would signal a return to the weekly support at $0.164.
We’ve already come to the end of this CHZ analysis! After studying the weekly and daily scale, we can see that the asset is at a key level that it should not lose. Depending on whether the weekly pivot area loses or recovers, the scenario will be completely different, but you will be ready because now you have in mind all the levels to watch. It is true that the very clear position statement for the coming weeks is complicated given the current state of the market. In addition, the European Central Bank will have the opportunity to express itself very soon on interest rates. Thus, fluctuations are likely to occur in the markets. So be careful with your positions by managing your risk as best as possible!
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