• Chiliz has recently seen bullish momentum on the lower timeframes but approaches another key resistance level on the daily timeframe.
• Chiliz faced rejection at the $0.1275 mark in December and continued its freefall to reach the local low at $0.097 in late December.
• $0.131 and $0.1485 remain key resistance levels to watch out for as Chiliz could push further north but those gains could get curtailed near these levels.
Chiliz has been on a bullish run recently, with bullish momentum seen on the lower timeframes. This follows a period of bearishness in December, when Chiliz faced rejection at the $0.1275 mark and fell to the local low at $0.097. As it stands now, it appears that the market structure has taken a bullish hue after breaking above the $0.116 mark. However, there still remain some key levels of resistance that need to be cleared before we can see further gains.
The first resistance level to watch out for is $0.131, which is a long-term level of significance. Beyond that is a bearish order block on the daily timeframe which extends from $0.1325 to $0.1485. If Chiliz is able to break above these levels, then we could see further gains in the token. However, if it fails to do so then we could see a pullback in the price.
It is important to note that the selling pressure since mid-November has been immense, and the market could still remain bearish in the longer timeframe. Additionally, a fair value gap from mid-December has already seen a strong bearish reaction and this imbalance has not been filled yet. This means that traders should be wary of further downward pressure in the coming weeks and months.
Finally, evidence from the charts showed that the supply held by top exchanges took a dip recently, indicating that whales may be accumulating the token. This could be an early sign that the local top is imminent and that further gains are likely in the near future. All of this means that Chiliz remains an interesting token to watch in the coming months.