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Chiliz (CHZ) Stabilizes at Support, Correction Phase Could Be Concluding

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Nikola Lazic
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Key Takeaways

  • ABCDE triangle signals potential breakout or further consolidation.
  • Critical support at $0.0656, resistance at $0.084.
  • RSI neutral, awaiting confirmation of directional momentum.

Chiliz (CHZ) is navigating a significant technical phase characterized by Elliott Wave patterns and key Fibonacci levels.

The charts indicate the conclusion of a descending triangle, suggesting the potential for a bullish breakout or further consolidation.

This analysis utilizes the 4-hour chart for broader context and the 1-hour chart for short-term price projections.

CHZ Price Analysis 

On Dec. 5, the price of CHZ reached a yearly high of $0.142 and entered the correction phase. The 4-hour chart showcases Chiliz completing an ABCDE correction pattern within a descending triangle structure.

The final wave (E) forms as the price tests descending triangle support at around $0.075.

This zone is critical support, with price oscillations tightening near the triangle’s apex.

CHZ price analysis
CHZUSD in a descending triangle | Credit: Nikola Lazic/TradingView 

The broader Elliott Wave count reflects the end of an impulsive wave (v) at $0.14, followed by a steep correction that brought the price down nearly 50%.

This consolidation phase aligns with classical Elliott Wave guidelines, suggesting a breakout is imminent.

Notably, the Relative Strength Index (RSI) is trending near the oversold region but lacks confirmation of a bullish divergence, signaling indecision.

Key horizontal resistance at $0.084 coincides with the 0.618 Fibonacci retracement level, a pivotal area for determining momentum.

A sustained close above this level would signify a bullish continuation, beginning a new impulsive phase.

CHZ Price Prediction 

The 1-hour chart provides a closer look at the final stages of the corrective triangle, highlighting short-term price scenarios.

A bounce from $0.0656 (0.786 Fibonacci level) could initiate wave (i) of a new impulsive cycle, with targets at $0.095 and $0.106 based on Fibonacci extensions.

CHZ price prediction
CHZUSD testing support | Credit: Nikola Lazic/TradingView 

If bullish momentum strengthens, a decisive break above $0.084 (0.618 Fibonacci retracement) would validate this scenario.

In this case, initial resistance lies at $0.095 (0.5 Fibonacci level), with further extensions targeting $0.106 (0.382 Fibonacci level).

Alternatively, failure to hold $0.0656 would invalidate the bullish outlook, potentially driving prices to $0.053 (the 1.0 Fibonacci level) or even $0.047.

The RSI on the 1-hour chart shows early signs of recovery but requires volume confirmation for sustained momentum.

In conclusion, Chiliz is at a critical juncture, with the potential for a breakout from the descending triangle shaping its next trend.

Close monitoring of support and resistance levels and RSI and volume dynamics will provide more precise insights into the price direction.

Key Levels to Watch

  • Immediate Resistance: $0.084 (0.618 Fibonacci retracement)
  • Key Support: $0.0656 (0.786 Fibonacci retracement)
  • Critical Support: $0.053 (1.0 Fibonacci retracement)
  • Short-Term Target: $0.095 (0.5 Fibonacci retracement), $0.106 (0.382 Fibonacci level)
  • Invalidation Zone: Below $0.065, signaling further downside risks
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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