Chiliz [CHZ] has rallied 10.6% in the past 24 hours and saw its daily trading volume soar by 160%.
The high-volume price surge on the 29th of March, when volume and price moves are usually subdued, indicated a possibility of a strong uptrend for the upcoming week.
On the 1-day chart, the structure that CHZ exhibited since the start of the year was quite encouraging. After a rally to the long-term supply zone at $0.055-$0.065, CHZ has retraced to the $0.035 level.
This was the 78.6% Fibonacci retracement level based on the impulse move earlier this year. The retest of this crucial support did not yield an immediate, bullish response.
The buyers have, over time, forced prices higher once again.
The OBV was ticking higher over the past month, but there was a worry here. The trading volume has been below the 20-day average for the most part. Meanwhile, the RSI had not established itself above neutral 50 over the past six weeks, either.
This has changed in the past 24 hours. The RSI reached 60, and the volume surge saw a healthy uptick on the OBV.
If sustained, CHZ could become one of the outperforming assets as it recovers toward the $0.065 swing high. With extremely pessimistic sentiment around Bitcoin [BTC] and fearful macroeconomic conditions, it remains to be seen if Chiliz can do well.
Traders’ call to action – Do not FOMO into this rally
Despite the swift gains in the past 24 hours, CHZ bulls were unable to reclaim the $0.04 local high set earlier in March. The OBV has climbed past local highs, and the RSI has reached overbought territory, despite the rejection.
A rising channel (purple) has formed, and its highs were in the $0.043-$0.045 area. Therefore, this channel high would oppose the altcoin’s rally if CHZ can climb past $0.04.
Swing traders already in long positions can look to take profits. Those who missed the move can wait for a retracement to $0.034-$0.036 before looking to go long.
Final Summary
- CHZ’s rally in the past 24 hours reinforced the long-term bullish structure of the altcoin.
- In the coming days, the $0.04 and the $0.043-$0.045 would likely halt any further price rally. If breached and retested, it could be a buying opportunity.