Bitcoin, Ether, and XRP are all in the green on Tuesday as the cryptocurrency market shakes off the effects of the ongoing war in the Middle East.
The rally by the leading cryptocurrencies has spread to other top altcoins, with Chiliz (CHZ), adding 6% to its value in the last 24 hours.
The native coin of the leading sports blockchain is rallying thanks to a bullish breakout a few hours ago.
It broke out of a falling wedge, a technical pattern often associated with bullish reversals.
Furthermore, on-chain data signals a mixed outlook, with the bulls slightly edging the bears.
The momentum indicators are also strengthening, suggesting that CHZ could extend its upward trend if buying pressure persists.
Improved sentiment pushes CHZ’s price higher
CHZ is up 6% in the last 24 hours, experiencing a similar pump to the broader cryptocurrency market.
Its rally comes as CryptoQuant summary data shows mixed conditions with early signs of bullishness.
According to CryptoQuant, there are several large whale orders and few retail traders in the market, suggesting a slightly optimistic outlook for CHZ.
However, activity across both spot and futures markets suggests sellers’ dominance, indicating that the market sentiment remains mixed for CHZ.
Santiment’s Social Dominance metric for Chiliz also supports a bullish outlook.
This metric measures the share of CHZ-related discussions across the cryptocurrency media.
The metric has been increasing since the start of the month and now reads 0.016%, the highest level since early February.
The increase in this index indicates growing market interest and strengthening sentiment among CHZ investors.
Chiliz price forecast: will the bulls take firm control?
The CHZ/USD 4-hour chart is bullish and efficient, unlike the leading cryptocurrencies (BTC, ETH, and XRP).
CHZ is now trading around $0.040, with the near-term bias currently bullish as the price holds above the recently broken falling wedge pattern
It broke out of a resistance zone, with the 4-hour candle now trading around 50- and 100-day EMAs clustered around $0.039–0.040, indicating emerging trend support after the rebound from $0.034.
The technical indicators suggest that there is a momentum shift for CHZ.
The Relative Strength Index (RSI) on the 4-hour chart reads 66, above the neutral 50, and heading towards the overbought territory.
The Moving Average Convergence Divergence (MACD) line is also crossing above its signal line into positive territory, suggesting strengthening upside pressure.
If the daily candle closes above the $0.040 psychological level, it would open the way for CHZ to retest the mid-February reaction high near $0.043.
An extended rally would see the bulls take out the $0.045 resistance, where prior supply emerged along the former trendline.
However, if the recovery fails and the daily candle closes below $0.040, CHZ may likely retest the $0.037 support.
A deeper correction could bring the $0.027 support into focus in the near term.
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