Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- Chiliz faced rejection on a bearish order block near range highs
- Will the range lows see enough demand to push CHZ higher again
USDT (Tether) Dominance saw a major rally in November as fear in the markets forced traders and investors to flee to stablecoins. However, it saw a decline in the past 36 hours as Bitcoin and the rest of the crypto market saw a small rally. Chiliz also bounced off the $0.167 support level.
Read Chiliz’s [CHZ] Price Forecast 2023-24
There could be a buying opportunity on another downtrend for CHZ. However, at the time of writing, the FOMC minutes had yet to be released and could lead to volatility in the markets.
Bearish 12-hour order block saw a reaction, has CHZ found another local bottom or could it drop lower?
Chiliz formed a range between $0.28 and $0.16, and the price has been bouncing between these two levels since Sept. 23. The mid-value was at $0.22 and at the time of writing, the price was seeing quite a reaction from the $0.167 support level.
Still, on the daily time frame, the market structure was bearish for Chiliz. The Relative Strength Index (RSI) was below the neutral 50, while On-Balance Volume (OBV) also formed a lower high and a lower low in November. This showed that selling pressure has been strong in recent weeks and slightly dominant over buying volume.
The plotted Fibonacci retracement levels showed that $0.18 was the 23.6% retracement level. On shorter terms, the $0.175-$0.18 area has been key support in recent weeks. $0.188-$0.19 would likely meet some resistance if CHZ sees some gains.
While buying an asset near the low of a three-month range can be a good risk-to-reward trade, there was the threat of heightened volatility. Another drop to $0.16 could happen and buyers can wait for such a dip. Invalidating their bullish idea would be a drop below USD 0.145.
The average coin age is falling while network growth and active addresses are rising
The decline in the average coin age meant an increase in the movement of CHZ tokens between addresses. Given the rising trend of active addresses (30 days) over the past three weeks, the falling average age came as no surprise. Network growth was also high in the two weeks leading up to the World Cup.
An upward slope on the average coin age can precede a sharp rise in price. Higher time frame investors can keep an eye on this metric as well as the price action. It may take several weeks for such a slope to manifest.