- Chiliz token forms a double bottom on the daily chart, a bullish breakout possible.
- On the 4-hour chart, we can witness an ascending triangle, confirmed by increasing volume.
- The next target is expected to be $0.68 for the price action.
New Delhi(CoinChapter): Chiliz(CHZ), the native token of Socios, a sports entertainment platform, is trading with a bullish outlook for 2021, rising by nearly 60% in October. Looking at the current Chiliz price trend in the charts, it seems that this bullish pattern will continue for November as well.
It is evident from the current charts that for the week ending Oct 25, CHZ price rose by more than 31%, while for the following week, the prices shot up by nearly 17%. Furthermore, we can witness a swift increase in the trading volume of the token in the past few days.
Chiliz Price Analysis: Forming Double Bottom
As clear from the 1-day chart by TradingView of CHZ/USD, the trading pair is actually forming a double bottom. In the chart below, prices dropped from $0.48 to $0.28, followed by a rebound to $0.48. A similar pattern was repeated, and now, the conditions for the double bottom are fulfilled.
In a double bottom, the twice-touched low is considered a support level. Rising by 75% in the past three weeks, the increased volumes indicate a reversal. If the price of Chiliz maintains above $0.48, a bull run towards $0.68 can be witnessed.
In a double bottom, the prices rally after a breakout from the neckline (at $0.48) to a value equal to the difference between the first top and first bottom (equal to 20 cents in this case). Hence, our next target after a breakout from the double bottom is at $0.68.
CHZ Price 4 Hour Chart Supports the Bullish Analysis
In the 4-hour chart below, a crystal clear bullish pattern is present, called the ascending triangle. In the support and resistance trendlines below, the ascending triangle is confirmed, followed by rising volumes. The pattern shows that investors are accumulating Chiliz.
A breakout is possible in the short term, and a long trade can be planned once the prices break out from the ascending triangle.
Partnering with big names in the sports industry like Laliga and TISA, Socios has come a long way. In October, the firm also partnered with Racing Club to launch their first fan token on the Socios.com app ($RACING). Chiliz, one of the biggest tokens in the crypto space, has reached a market cap of $3 billion, occupying a rank of 61 in the market.