- The CHZ/USDT pair reversed weekend losses with a 15% intraday surge
- Chiliz token is trading within a bearish pennant formation since July 20
- The sports token is on a raging adoption spree
JAIPUR (Coinchapter.com) – CHZ, the native blockchain asset of the tokenized sports and entertainment exchange, Chiliz shrugged off its weekend losses as bulls surprised bears by pushing the CHZ/USDT higher in a 13% intraday surge.
Buying pressure has been building up since Sunday’s evening trading session. But Monday’s upshot took shape at the opening bell of the London trading session. Bulls bought the bottom at $0.265 and didn’t rest until CHZ reclaimed $0.32. The pursuit of a higher local top is still on.
However, buyers would still need to keep the momentum on for CHZ/USDT to print a close above $0.325, a crucial multi-month resistance responsible for limited upside price action since the May crypto market crash.
Related: Chiliz chalks up 45% gains as CHZ pool goes live on Bancor
Chiliz Technical Setup
As per the 4-hour CHZ/USDT chart, the trading pair looks to invalidate the bearish pennant setup that dictated its trend since July 20. In addition, the moving average convergence divergence (MACD) indicator just printed a bullish crossover. Whenever MACD flips into the bullish cycle, a continuation of the rally is guaranteed.
But the explosive rally led Chiliz’s cryptocurrency to run into the overbought zone. Relative strength index (RSI) clocked 69.24 and is close to ticking beyond the range limit at 70. Traders/investors are recommended to assess the scene before opening long positions carefully. RSI numbers above 50 favor bears and below 50 favors bulls.
The rise in selling intensity could cause the CHZ/USD exchange rate to reverse gains and drop to $0.274, $0.256, $0.245. The playout of the said scenario would be similar to Saturday’s trading session when prices went up to $0.3 and then dipped back to $0.27. All on the back of a surging RSI reading of 72.47.
Related: Chiliz cheers bears with a doable death cross as CHZ eyes 40% decline
Nonetheless, if bulls manage to tighten their grip on CHZ’s momentum, the crypto asset stands a chance to fly to $0.36. And if the CHZ/USDT spot pair closes above $0.36, the move would solidify the course for further gains.
Fundamental Developments
Chiliz’s platform adoption is on a milestone achievement spree. For example, English Premier League football club Leeds United recently launched their fan tokens.
Along with this, the Chiliz cryptocurrency exchange announced support for the Ethereum London hard fork, recently.
