Key Takeaways
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.
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.
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.
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.
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.