With a strong mix of bullish technical signs and a recent breakout from a downtrend, Chiliz (CHZ), the digital currency that powers sports fan engagement website Socios.com, is creating buzz in the crypto market.
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CHZ ready for growth
Reflecting rising investor confidence, CHZ has consistently risen over the medium to long term. The way the token is handling a significant resistance level at $0.16 further accentuates this good stance. A successful breach of this barrier could trigger a buying frenzy that drives CHZ to much higher prices.
The trading pattern trends are fanning the flames and showing a positive tilt. Increased trading volume due to price increases indicates strong underlying demand for CHZ. This demand, along with the technical breakthrough, gives hope that CHZ will see a big price increase.
Renowned Bitcoin specialist Alex Clay supports this perspective by pointing out a positive flag pattern on CHZ’s monthly chart. Often considered a harbinger of major price swings, this technical setup lines up exactly with the recent breakout from the downtrend channel.
#CHILIZ Monthly time frame
Reaccumulation below the top of the descending channel in the form of a bullish flag
Now break out of this huge descending channel
Send it
1st goal – 0.26620$
— Alex Clay (@cryptclay) June 1, 2024
Clay has set several price targets; the first barrier is $0.2662, then the more ambitious second target is $0.4509. For Chiliz, the breakout of the descending channel is a clear sign that the downtrend is coming to an end and a new period of expansion is beginning.
Technical elements together with a favorable market mood offer a somewhat hopeful picture for the future of the token.
Optimistic but cautious outlook
The near future seems promising for Chiliz; but unexpected price fluctuations may occur and the coin may encounter opposition at the specified price levels.
While there are certain potential obstacles, Chiliz’s overall future clearly looks bright. Chiliz is positioned for a potential price increase with strong technical fundamentals, high investor confidence and a recent post-recession breakout.
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Investors with a high tolerance for risk and a keen eye on the sports fan engagement sector should keep a close eye on CHZ’s activities in the coming weeks.
Featured image from Getty Images, chart from TradingView