- 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
In such a case, a decisive close below $0.46 will invalidate the bullish outlook. A continuation of ask orders here could lead to a 43% downswing to $0.26 or the 61.8% Fibonacci retracement level.
