CHZ could lose current support at $0.1330 and drop to $0.0995.
If BTC rallies after this year’s FOMC meeting, CHZ could move up.
Improved sentiment could lead to the bulls breaking above $0.1666 – this would invalidate the above prediction.
Chiliz [CHZ] has been less attractive to investors lately as the price has fallen lower. At the time of writing, CHZ was trading at $0.1367, close to the 0% Fib level ($0.13330).
Interestingly, CHZ fell below $0.136 after that BTC fell below $17.18K. Historically, BTC has always rallied after a FOMC meeting, and at the time of writing, an announcement was expected on December 15.
However, FOMC’s announcement last November led to an erratic response from BTC. It rose aggressively for 12 hours and then dumped. A similar scenario could cause BTC to rise after the FOMC announcement, which could push CHZ higher.
However, if the November trend repeats, CHZ will collapse when BTC falls after a short-lived surge. Thus, the coin could drop to $0.1221 or $0.0995.
Has CHZ bottomed out, or is it going even lower?
According to the technical indicators, Chiliz bears still have what it takes to move lower. The Relative Strength Index (RSI) was at the time of writing a slight slope towards oversold territory. This showed that buying pressure was easing, giving sellers more room to manoeuvre.
The On Balance Volume also made a slight downward movement, indicating that trading volume declined significantly. This showed that trading volume was insufficient to increase buying pressure at press time. This increased the selling pressure.
Therefore, CHZ could drop to $0.1221 or $0.0995 after breaking the immediate support at $0.1330. So $0.1221 and $0.0995 could be targets for short selling.
However, a break above $0.1666 would nullify the above forecast, especially if BTC continues to move higher in anticipation of the FOMC and CPI announcements. In that case, CHZ might target resistance at $0.1874 after breaking above $0.1666.
CHZ saw an improvement in weighted sentiment
According to Sanitationweighted sentiment for CHZ improved after sliding into positive territory.
However, the historic improvement in weighted sentiment did little to offset CHD’s decline. An example of this was the rise in positive sentiment around November 24, which coincided with the fall in the price of the coin. Still, investors should keep an eye on sentiment.
In addition, the number of active addresses has increased in the past 24 hours. This revealed that more accounts were involved in trading CHZ, which could mean that trading volume could increase in the near term.
Increased trading volume would increase buying pressure and start an uptrend. So it’s worth keeping the statistic on someone’s watchlist. But most importantly, investors should monitor Bitcoin’s performance to get a clear direction for Chiliz’s possible move.
This post Chiliz [CHZ] investors can take advantage of these levels if the November BTC reaction…
was published first on https://ambcrypto.com/chz-investors-can-profit-from-these-levels-if-november-btcs-reaction-repeats-after-the-fomc-meeting/