- Chiliz price saw a 5% upswing on October 17, setting up the start of a trend change favoring bulls.
- This development might lead to a retest of $0.208 after a minor pullback to $0.179.
- Transaction data shows that roughly 1 billion “Out of the Money” CHZ tokens will be supplied at $0.210.
Chiliz price looks to rest after breaking its ongoing consolidation and establishing directional bias favoring the bulls. Going forward, investors need to prepare for a pullback that will be an opportunity to accumulate before another run-up.
Chiliz price ready to make its next move
Chiliz price dropped as low as $0.160 on October 13 due to the Consumer Price Index print. This volatility followed through to the other side as bulls took over after the bears’ brief stint, resulting in a local top at $0.194.
This range, extending from $0.160 to $0.194, currently dictates what Chiliz price will do next. Due to the recent spike in bullish momentum for Bitcoin and, as an extension, the crypto markets, altcoins are starting to look interesting. As for Chiliz price, investors can expect a pullback to $0.179, which could kick-start the next leg-up for CHZ. This move needs to flip the range high at $0.194 into a support floor to reach the $0.208 hurdle.
In total, this Chiliz price move would constitute a roughly 14% upswing and is likely where the upside is capped for CHZ.
CHZUSDT 1-day chart
While the technicals are showing a bullish outlook for Chiliz price, investors need to pay attention to IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain metric shows that roughly 15,600 addresses that purchased nearly 1 billion CHZ tokens at an average price of $0.217 are “Out of the Money.”
Therefore, the upswing described in the above section could face a spike a selling pressure at $0.217 from investors looking to break even. Therefore, the local top could form around $0.210 or $0.200.
On the other hand, if Chiliz price fails to sustain a run-up and slides below $0.177, the midpoint of the $0.160 to $0.194 range, it will indicate a spike in selling pressure. This development, while nerve-racking, is not the end of the world for CHZ holders.
But if Chiliz price produces a four-hour candlestick close below $0.160, it will invalidate the bullish thesis by producing a lower low. In such a case, CHZ could slide 18% to retest the immediate support level at $0.131.
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence Chiliz price.