Key Takeaways:
- Chiliz price jumped over 34% within seven days.
- CHZ has formed a bullish pattern with a 210% price target.
- Furthermore, the FIFA world cup adds to the bullish cues for the CHZ price rally.
NEW DELHI (CoinChapter.com) — Sport and esports platform Chiliz’s native token CHZ price jumped over 34% in a week, reaching an intraday high of $0.29 on Nov 6 from Oct 31’s low of $0.216.
The token rallied after Chiliz price formed a bullish pattern called the inverse head and shoulder (IH&S). F
In detail, the inverse head-and-shoulders pattern entails three consecutive bottoms – the shoulders and the head in between. All three dips connect through a mutual Neckline. As the formation progresses, the price action forms the three dips and returns to the neckline.
Moreover, the pattern predicts a surge if the token conquers the neckline. CHZ bulls could expect returns as high as 210%, bringing the CHZ/USD exchange rate to $0.901. The CHZ price is currently near the neckline of the pattern.
A breakout and hold above the trendline would likely attract buyers to the market, helping CHZ price rise higher.
Chiliz’s Overbought RSI Might Play Spoilsport
Meanwhile, CHZ’s relative strength index has become overbought, with a value of 78.21 on the daily charts. Traders consider overbought RSI levels a prelude to an upcoming trend reversal favoring the bears. As a result, the phenomenon often acts a sell signal for an asset.
If the overbought RSI induces a sell-off, CHZ prices could fall to resistance-turned-support near $0.275. The price level previously acted as resistance for the token since Aug this year. A break below immediate support could push Chiliz price to fall to support near $0.25 before recovering.
Conversely, if the uptrend continues and CHZ prices break above the IH&S pattern, the Chiliz price could rise to resistance near $0.302. A break and hold above immediate resistance could see CHZ price rise to $0.34 before downside corrections pare gains.
FIFA World Cup Helping CHZ Price Jump
Chiliz price might be taking bullish cues from the upcoming FIFA World Cup. The platform orients itself as a fan token with a target audience of sports fans. The FIFA World Cup begins in Nov has become one of the strongest fuels for the growth of CHZ price.
The CHZ token helps users participate in the lives of their favorite sports teams, providing additional revenue streams to the companies that support the teams. Hence, even if CHZ price fall due to an overbought RSI, the token has a powerful bullish coming from the world cup.
