- Chiliz price has corrected nearly 45% since hitting an all-time high at $0.95.
- Now, the Momentum Reversal Indicator (MRI) has flashed a trend reversal signal that could lead to a 55% bull rally.
- An extension of the correction beyond the $0.46 support level would invalidate the bullish thesis and trigger a sell-off.
Chiliz price looks primed to reverse and retest previous all-time highs as the downward trend seems to have reached exhaustion.
Chiliz price poised higher highs
Chiliz price experienced a massive 1,813% run-up that pushed it from $0.05 to almost $1.00. Now, CHZ might reverse after a brief 45% correction to $0.53 as the MRI printed a “preemptive bottom” on the 4-hour chart.
The bullish setup forecasts that a Chiliz price is bound for a one to four 4-hour candlestick upswing.
If CHZ price manages to slice through the declined resistance trendline at $0.61, it will affirm buyers’ resurgence. In which case, Chiliz might surge another 45% from this breakout point to retest the MRI’s “breakout line” at $0.90.
A spike in bullish momentum leading to a decisive close above this barrier could trigger FOMO among investors, pushing Chiliz to retest the all-time high at $0.95 and swing towards the 127.2% Fibonacci retracement level at $2.4.
CHZ/USDT 4-hour chart.
Investors should note that MRI’s signal was only “preemptive.” Thus, the probability of an actual reversal is very low.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model also reveals two massive camps of underwater investors ahead.
The initial supply barrier at $0.58 has about 18 addresses holding nearly 99.84 million CHZ, and the next one at $0.63 is relatively larger. Roughly 4,300 addresses had previously purchased 293 million CHZ around this price level.
Hence, any short-term buying pressure will likely be absorbed by investors who are currently “Out of the Money” if they decide to sell their holdings and break even.
Chiliz IOMAP chart