Chiliz (CHZ) price has been trading in a descending trend line since mid-March. Indecision awaits breakout above downtrend lows of $0.3648
*Chiliz made the move lower to $0.3648
*CHZ/USD pair may extend consolidation
*Jump Trading invests in sports fan token ecosystem Chiliz
Bears paused momentarily on CHZ/USD with long-legged Doji left on Wednesday, signaling indecision. Chiliz made the move lower to $0.3648 before a rebound to highs of $0.51. Bulls touched the barrier at $0.51 coinciding with descending trendline resistance, causing the recovery to be so far limited and lacking momentum to extend. The CHZ/USD pair may extend consolidation while awaiting a fundamental catalyst to drive it from the lackluster decline since March 12. Whether the recent investment from Jump Trading in the Chiliz ecosystem will drive up the price is yet to be seen.
Jump Trading Invests in Sports Fan Token Ecosystem Chiliz
Jump Trading, a Chicago-based high-frequency trading firm has invested an undisclosed amount in sports fan token platform Chiliz. This comes after Chiliz succeded in onboarding new club partners such as FC Barcelona, AC Milan, and Manchester City, Chiliz revealed plans for expansion in the US and North America. chiliz has also teamed up in a long-term strategic partnership with Binance exchange. In late 2020, Binance announced that Chiliz fan tokens for Paris Saint-Germain (PSG) and Juventus (JUV) football clubs would be featured on its Launchpool platform.
CHZ Daily Chart: Ranging
The CHZ/USD pair stands at the back foot since the week’s start with limited recovery. Wednesday’s Doji signaled strong indecision at key support at $0.3648 cracked on the asset’s further downside move. Bulls met resistance at $0.51 but may face stronger headwinds at this strong obstacle, which could result in extended consolidation and possible easing, before continuing.
The MA 50 at $ 0.3438 remains the initial target by bearish traders. If Chiliz makes a pullback below the MA 50 close at $0.343, further declines may arise. The RSI at the mid 50 reading suggests possible consolidation. Otherwise, a sustained breakthrough of $0.51 after narrow consolidation, could signal a fresh bullish extension and expose the psychological $0.70 barrier.
CHZ/USD 4-hour Chart: Ranging
On the 4-Hour chart, chiliz made a subsequent rebound from the ascending trendline support at $0.3669. the trend line adds to the converging impact of the MA 50 and 200 while price remains capped beneath these key levels. In the event of CHZ price breaking above the downtrend resistance at $0.51, then a bullish reversal to $0.69, and an all-time high at $0.88 may take place.
Meanwhile, the pair is expected to hold between the consolidation range of $0.36 and $0.51 with the ascending trendline support hoping to sideline further downside risk. The RSI slightly below mid 50 reading suggests a more immediate downside. The battle between the bears and bulls highlights a measure of uncertainty in the market. Summarizing, the CHZ/USD pair is still testing the neutral phase at the bottom of a downtrend. A decisive close below the $0.36 level or a rally above $0.51 would change the outlook accordingly.
Resistance Levels: $0.97, $0.78, $0.63
Support Levels: $0.42, $0.32, $0.22
Image Credit: Tradingview
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