The current price movement of Chiliz (CHZ) shows that the investors are trying to bring it into the inverse head and shoulders pattern.
Once CHZ is within the pattern, the investors will try to break out of its neckline to form a positive. This would allow the trading price of CHZ to move in an upward direction.
The Reversal Formation
The attempt that the bullish investors are making at the moment by forming a reverse formation is to bring CHZ up to $0.54.
However, the bears may not let that happen easily. They may exert strong selling pressure from their end in order to bring CHZ’s trading price lower.
If the bears do not give up easily, then the only possibility for CHZ would be in the negative direction. At the moment, the bears are very aggressive as they continue defending the neckline.
They may not let the bulls do as they please and pull the trading price of the CHZ even lower than where it stands at the moment.
Bears to Bring CHZ Down to $0.14
If the bulls fail to build up strong momentum, then the trading price of CHZ may continue to decline. The first lower trading mark that the bears may pull CHZ to would be $0.21.
This would be the beginning of further declines in the trading price of CHZ. The bears may continue selling CHZ and if the selling pressure increase, its price may plummet to $0.18.
Going forward, if more sellers keep joining the selling spree, then the trading price of CHZ may plunge to $0.14.
What if CHZ Bounces Back
If the bulls manage to form a rebound, then the price of CHZ may start rising and the bears may leave the competition.
They may fail to defend the neckline mark and if the bulls are able to take it, then they will gain control over the trend.
This would allow them to form a strong rally and push CHZ’s value higher. At the moment, the RSI for CHZ is residing almost in the middle, so it has the tendency to move in either direction.
CHZ Price to Surge over to $0.30
Although the bears are currently in power there is a positive factor helping CHZ, which is the FIFA World Cup 2022.
Due to the FIFA World Cup, many investors are supporting the CHZ, because it is a digital football platform token. Therefore, it has a chance of getting pushed higher to be able to overcome the neckline.
If the bulls start rallying in favor of CHZ, then its price may surge to $0.26. From there, the bulls will have the ball in their court and they may be able to push it up to $0.30.