- Chiliz price has broken out of a bull flag pattern, hinting at a 75% upswing.
- The rally could slowdown around the Momentum Reversal Indicator’s (MRI) breakout line at $0.90.
- If sellers manage to slice through the 50 four-hour moving average (MA) at $0.58, a bearish scenario will evolve.
The recent development surrounding the Chiliz-backed Socios platform could hold the key to spark another CHZ price rally.
Manchester City welcomed by Chiliz and Socios
Socios, a fan engagement platform powered by Chiliz blockchain, added sporting organization Manchester City to its platform.
In retrospect it was inevitable.
— Chiliz ($CHZ) (@Chiliz) March 19, 2021
Hello Premier League, welcome @ManCity $CHZpic.twitter.com/jI5fSrSdD6
The next step for Socios would be to create fan tokens for the football club, which are full fungible digital assets that give users the right to vote on club matters. Additionally, these digital assets help holders earn rewards, VIP invites, and other merchandise.
Manchester City now joins other popular sporting clubs like FC Barcelona, Juventus, Paris Saint-Germain, AC Milan, etc on the blockchain-based NFT platform.
Chiliz price favors the bulls
Chiliz price spiked 292% between March 10 and March 12, which formed a “flag pole.” Soon after, CHZ started descending, forming lower highs and lower lows in the shape of a “flag.” Such market behavior led to the creation of a bull flag pattern.
The technical setup forecasts a 75% upswing to $1.03, determined by adding the flag pole’s height to the breakout point at $0.59.
Adding credence to the bullish outlook is the MRI indicator’s recent reversal signal, presented in the form of a green one arrow on the 4-hour chart. This setup forecasts a one-to-four candlestick upswing.
Although not immediately, CHZ price picked up slowly as it has surged nearly 22% since this signal was flashed.
Chiliz bulls will face a stiff resistance barrier around $0.90 due to MRI’s breakout line. A breach of this level might send CHZ flying to its intended target at $1.03.
CHZ/USDT 4-hour chart
Regardless of the bullish outlook, a move below the 50 four-hour MA at $0.58 will invalidate the bullish thesis for Chiliz price. If this were to happen, CHZ could pull back 18% to $0.47.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.