Chiliz (CHZ) Price Rallies 10% In A Week, Bullish Times Ahead?

Key Takeaways:

• Chiliz announced that the Indonesian government had whitelisted its native token.
• Adding to its bullish cues, CHZ prices move in a bullish pattern.

NEW DELHI (CoinChapter.com) — Sports-centric blockchain platform Chiliz has been recovering from its June 10’s 33% drop in prices.

Aiding in the recovery is bullish news for the altcoin coming in from Indonesia. Chiliz founder Alexandre Dreyfus announced that the Indonesian government announced a list of over 500 digital assets traders could legally trade in the country.

At a time when regulatory action against crypto assets has become a bearish cue for the sector, the news of regulatory approval from Indonesia would likely attract bulls to the market.

CHZ Price Forms Bullish Pattern With Massive Price Target

Meanwhile, another bullish cue that might see CHZ bulls enter the market is the token’s price forming a bullish technical pattern called the ‘Bull Flag.‘

Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.

A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.

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Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, CHZ could rally to $10.5, a jump of over 15,300% from current levels.

However, CHZ bulls must rally nearly 100% to reach the breakout level. The Chiliz token would require more bullish cues for the breakout to happen.

CHZ Price Recovers 10% In Seven Days

CHZ price has been clawing upward from its 33% plunge on June 10. The Chiliz token price has spiked nearly 10% from June 14’s low of $0.064. However, bearish pressure against CHZ price forced the token to drop 3.4% from the day’s high of $0.0699.

If the downtrend continues, CHZ price might drop to support near $0.0653. Furthermore, breaching the immediate support level could result in the Chiliz token falling to test its support level near $0.059 before recovering.

The relative strength index for CHZ remains oversold, clocking at 24.01 on the daily charts. Traders often consider the occurrence as a sign of impending bullish reversal. Buyers relying on technical signals might enter the market to capitalize on the dip.

Hence, CHZ price might rise to its resistance near $0.0715. Bulls must break and consolidate above the immediate resistance before targeting the resistance near $0.0782 before downside corrections pare gains.