Chiliz (CHZ) Should Churn Out 35% Bullish Rally Soon, Predicts Poppe

Read CoinChapter.com on Google News

Yerevan (CoinChpater.com) – Chiliz (CHZ), a governance token for Socios.com, a sports industry platform, is expected to break out of the consolidation phase it has been trading in for the past 6 weeks. Meanwhile, Michael Van de Poppe, an Amsterdam-based market analyst, sees the price rising by 35 percent.

The analyst took to Twitter and presented a 1D chart of Chiliz vs. Tether USD stablecoin (USDT) and Enjin coin (ENJ). He admitted having a bearish outlook on them earlier but noted the bullish developments possible in the future.

On the chart presented below, Mr. Van de Poppe emphasized three significant levels for the token and various trading strategies.

At the bottom of the chart, a green bar represents the minimal level where swing traders would be prepared to buy Chiliz. For example, the token was trading at 0.26 USDT in the Monday session, directly from the mid-level green line on the chart. That line represents the margin, where swing traders typically consider Chiliz oversold and start going in to buy the dip.

In hindsight, swing traders scan the charts for a gain opportunity and buy when they sense a change in sentiment approaching.

The next significant level price level for CHZ lies at the 0.37 USDT margin. The analyst noted that this is the level where daytraders are ready to dive in and buy the token, subsequently boosting the price even higher.

Mr. Van de Poppe suggests both those lines will act as support in the upcoming sessions, driving the bullish really.

Read more: Bitcoin Week Ahead Ep06: CPI report meets bearish pennant structure

Other Indicators

The token found support in the 200-day Simple moving average line (SMA-200: Red wave on the chart below). Chiliz bounced back from SMA-200 after the May 19 crash and on May 23, before correcting above it. However, the 20-day Exponential moving average (EMA-20) has been acting as resistance for CHZ since mid-May. Should the token manage to break up above the EMA-20, the level could provide additional support rather than resistance.

Moreover, the Chiliz has a quite low Relative Strength Index(RSI) at 40. This indicator shows the price momentum as perceived by the traders. It estimates the ‘normal’ range between 30 and 70. The RSI was near the bottom level in the range, suggesting that traders view the token as oversold and are likely to buy.

What is Chiliz?

Chiliz was launched in Malta in 2018 and grew by whapping 4,350 percent from Jan 2021 to March, where the token registered its all-time high at $0.89. It is ranked #62 in the crypto chart with a market cap of $1.59 billion as of the moment of writing.

CHZ is the governance token of the Socios.com platform. It is designed to bring together sports teams and their fans. The latter can use the increasingly popular genre of cryptocurrencies known as “fan tokens” to express their devotion. The token holders can then be active in their favorite sports, teams, and clubs. For instance, they participate in deciding who they want to see in the next PFL fight. Much like they chose on April 23, voting on Pettis vs. Collard.

Michael Van de Poppe saw a bullish future for the Chilliz token, predicting a 35 percent gain. His opinion relies on determining the predicted buying levels for daytraders and swing traders. Buying following both those strategies has the capacity to drive the price higher.

Read more: Polygon’s MATIC Trade Setup Points To 25% Pump This Week

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.