Chiliz (CHZ) Hits Lowest Level Since 2021, Now Testing Crucial Descending Support

Key Takeaways

• CHZ is near the end of its corrective cycle.
• The final bearish wave is nearly complete on the micro level.
• Reversal is likely near long-term wedge support.
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Chiliz (CHZ) continued to descend despite the market-wide recovery since Monday’s low. This brought the price to its major support level, anchored in June 2022. 

Analyzing the higher and lower time frames reveals compelling structural patterns that may indicate a potential reversal or final wave of the downtrend. 

With the price hovering near multi-year lows and signaling oversold conditions, market participants watch closely for signs of trend exhaustion or a breakout scenario.

CHZ Price Analysis

The daily logarithmic chart suggests a nearly completed corrective structure within a long-term descending channel since November 2021, an all-time high of $0.83. 

The entire movement can be interpreted as a complex W-X-Y correction pattern, with the current leg (Y) potentially concluding at a key Fibonacci extension level of 0.786 at $0.0354.

This area also coincides with the channel’s lower boundary, a region previously respected as dynamic support.

The Relative Strength Index (RSI) is at the oversold zone, signaling that a potential bullish divergence or relief rally may be imminent.

Despite prolonged selling pressure, this structural confluence of horizontal, diagonal, and Fibonacci support presents a high-probability bounce zone, especially if CHZ can reclaim $0.040 with volume.

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Price compression within the channel suggests that breakout potential is being built.

If broken to the upside, the descending resistance from 2022 could flip to support, with $0.1056 as a medium-term target.

Fibonacci levels show that $0.0494 (0.618 Fib) and $0.0625 (0.5 Fib) are the first significant upside targets should a reversal materialize.

However, there aren’t any bullish signs now, and we can see further downside before a bullish reversal comes. 

CHZ Price Prediction

The 1-hour chart details a micro 5-wave structure of a potential C leg, marking the end of a larger Y wave on the daily chart.

Currently, the price is in sub-wave (iv) correction, likely forming a small bear flag before a final downward thrust toward $0.0351 or slightly below.

Once this last leg of the impulse finalizes, bullish momentum is expected to return. 

The projected bounce, as annotated on the chart, aligns with a breakout from the short-term descending channel.

A sharp recovery to $0.046–$0.048 could follow, fueled by short covering and bullish reversal patterns.

The RSI on this timeframe mirrors oversold territory, confirming a likely bottom is forming. A failure to hold $0.035, however, could expose $0.032–$0.028 as extended supports.

Expect volatility during the final leg, followed by impulsive recovery if the structure holds.

Key Levels To Watch

• Major Support: $0.0354, $0.0351, $0.032–$0.028.
• Immediate Resistance: $0.040.
• Breakout Confirmation: $0.040.
• Invalidation Level: $0.0350.
• Fractal Watch Zone: $0.046–$0.048.