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- CHZ price is currently trading below $0.50 outside a bullish continuation pattern called the bull flag
- A decisive close above the flag’s upper bounder at $0.523 will signal the start of a potential bull rally
In the first few days of March, we saw CHZ witness a parabolic move towards the upside, which seemed sketchy to many investors. The token had rallied by almost 1200% in a short span of 12 days. It soon showed signals of correction by consolidating in the tight range of $0.35 and $0.61. On the 4 hour chart, CHZ established a breakout from the bullish flag pattern on April 12th, where we saw an enormous green candle carry the momentum. But within 24 hours, the token struck down by 7.52%. Even though the price is currently moving in an uptrend, it follows a particular pattern known as the impulsive wave followed by the corrective wave. The price to bounce back to the March high has to respect the ascending support trend line and continue to make higher lows.
BULLS BACK IN THE GAME TO PUSH THE PRICE ABOVE THE SUPPORT LEVEL OF $0.47
CHZ price target of $1.01 is obtained by adding the flagpole’s height to the breakout point. As portrayed by IntotheBlock’s In/Out of the Money Around price (IOMAP MODEL), the upswing will not be a cakewalk as the underwater investors are stacked against the bulls. Roughly 12,400 addresses that purchased 946 million CHZ tokens in the range of $0.49 to $0.53 are “out of the money”.Hence any short term buying pressure will face equal force in the opposite direction from investors who might want to break even, which is why we saw a rejection at $0.58, which led to the token crash at the support level of $0.47.
The current price of CHZ is below the 20 EMA. This might create short term selling pressure. Although the 20 EMA acted as resistance for the time being at $0.49, the asset will be backed by the 55 EMA as support at $0.48. If the price continues to fall beyond that level, then the 200 EMA at $0.44 will hop in to support the trend.
The RSI looks stable at 46, indicating no trend as of now.
CONCLUSION
The correction phase for CHZ will be over when the price moves above the 20 EMA on the 4-hour chart. Then investors can eye the next crucial target of $0.65. The selling pressure will eventually wear down, and the bulls have already come back to reverse the short term trend. A bearish scenario will only evolve when the price of CHZ drops below $0.39 for an extended period.
SUPPORT : $0.47, $0.35
RESISTANCE : $0.58, $0.60 and $0.92
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
