The Chiliz [CHZ] network has achieved robust growth and usability over the past two years thanks to the launch of fantoken. Unfortunately, this was not enough to protect his original token CHZ from the bear market. CHZ bulls have made a healthy impression since mid-June, but this may just be the beginning.
A comparison of CHZ’s price action with that of most of the other top cryptocurrencies reveals something interesting about the price action. While most digital currencies extended their downward spiral in June, CHZ’s bearish retracement pushed it slightly below the May support level. It has bounced back a whopping 45% to its latest high of $0.12.
CHZ traded at $0.108 on July 22 after a slight retracement over the past three days. However, the price action over the past three months offers insight into what to expect in the future. CHZ still has room for at least 28% gains from the current price level before retesting the closest resistance zone within the $0.140 price level. The latter falls within the 0.236 Fibonacci retracements and the same level has seen resistance in May.
Can CHD bulls sum up enough momentum for a new resistance test?
CHZ’s long-term performance is likely to be a mile past the $0.140 resistance. However, the short term remains full of uncertainty. We can remove some of this uncertainty by looking at CHZ’s stock flows to determine if there is enough buying volume for some more upside. CHZ inflows peaked at 12.12 million coins in the past 24 hours, against an outflow of as much as 1.68 million coins.
CHZ had higher inflows than outflows, thus leaning towards the bearish side. The above observation is in line with an increase in the supply on exchanges, as well as the outflow of top addresses. In other words, CHZ may be more disadvantaged as the selling pressure from top addresses increases.
CHZ’s 30-day MVRV ratio has risen significantly over the past 30 days. This indicates that most of the bottom buyers are already making a profit and thus the incentive to sell. This also means that they probably want to come back at lower prices.
A bear on the loose
CHZ’s on-chain stats suggest we’re likely to see some more short-term declines before that elusive resistance retest. However, this is subject to prevailing market sentiment, which may still support strong upside potential.
This post Rate why Chiliz [CHZ] may suffer short-term disadvantage before these levels are retested
was published first on https://ambcrypto.com/assessing-why-chiliz-chz-may-witness-short-term-downside-before-retesting-these-levels/