After recovering from its lows in June, CHZ is one of the cryptocurrencies that has delivered the greatest gains.It recently completed a 25% retracement from its highs in September.However, the bulls may be able to regain control with multiple signs, including a new listing.
Every time Chiliz launches a new fan token, demand for CHZ tends to rise.We should anticipate a rally over the weekend if history repeats itself.
This is due to Chiliz’s recent announcement of the Atlas FC fan token’s launch.
Additionally, Chiliz intends to launch a second token next week, the GFK fan token. These launches may all result in increased demand for CHZ.
The potential for bullish sentiment is supported by a variety of other current factors.At the moment, CHZ is situated in a Fibonacci retracement zone that has the potential to function as a psychological buy zone.
The green Chiliz, please
After a 25% decline from its September peak of $0.282 earlier this week, CHZ reached its lowest point at $0.208.
Within the 0.382 Fibonacci retracement line is the weekly low.Note that this occurred following a retracement from CHZ’s 2022 bottom to its most recent peak.
The probability of a bullish pivot at the current range is raised by the Fibonacci line.A move below the 50% RSI level was also caused by the downside in the last two weeks.
The fact that the RSI is at a short-term support level further enhances the upside potential.
The short-term course of CHZ may be made clearer by its on-chain flows.At the time of writing, exchange outflows had reached their all-time high of 2.16 million CHZ.At the same time, exchange inflows reached their highest level of 1.24 million CHZ.
The observation of exchange supply flow indicates a greater net outflow.To put it another way, more CHZ were purchased than were sold of the cryptocurrency.
However, CHZ’s supply held outside of exchanges has increased over the past seven days in relation to exchanges.This demonstrates that demand has been trending upward.
The same observation confirms that there was healthy demand for CHZ during the last seven days. On the other hand, the supply on exchanges declined during the same period. This is consistent with the bullish expectations and observed demand.
Moreover, the supply held by top non-exchange addresses increased slightly at the end of September. It remained relatively flat in the remaining days to the present.
The aforementioned metric demonstrates that whales have not contributed to week-end selling pressure.
On-chain metrics confirm that exchange flows favor some upside in the coming days.
Because this is in line with the Fibonacci retracement line, there were a lot of things that pointed to this expectation.
However, investors should still exercise caution due to the possibility of additional negative market events.
