Chiliz [CHZ]: How buyers can leverage this breakout to remain profitable 

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

Chiliz’s [CHZ] recov­ery from the $0.08 base­line orches­trat­ed a bull ral­ly, one that pro­pelled the coin beyond the bonds of its 20/50/200 EMA. While fix­at­ing a spot above these hur­dles, CHZ marked an expect­ed break­out from its bull­ish pat­tern on the dai­ly chart.

With the north-look­ing 50 EMA (cyan) glid­ing above the 200 EMA (green), buy­ers could seek to expe­dite their advan­tage in the com­ing times. 

But the broad­er mar­ket sen­ti­ment seemed to dete­ri­o­rate. Thus, the buy­ers should look for the entry trig­gers dis­cussed below before plac­ing calls.

At press time, CHZ was trad­ing at $0.2365, down by 2.06% in the last 24 hours.

CHZ Daily Chart

Source: Trad­ingView, CHZ/USDT

The bulls found enough fire­pow­er to impose a con­sis­tent streak of high­er peaks and troughs over the last few weeks. The recov­ery from the $0.08 lev­el entailed a stag­ger­ing 215% ROI until CHZ poked its four-month high on 23 August.

The decline from this lev­el chalked out a clas­sic descend­ing chan­nel on this time­frame. The resul­tant break­out has posi­tioned the coin for a near-term upside.

A com­pelling close above the $0.23-$0.24 range could aid the alt in retest­ing the $0.263-$0.28 range in the com­ing ses­sions. But a rever­sal below the $0.23 region could hin­der the bull­ish progress.

Mean­while, the gold­en cross on the 50 EMA (cyan) with the 200 EMA can set a sol­id foun­da­tion for the altcoin’s long-term growth. Also, the near-term retrace­ments would con­tin­ue to find rebound­ing grounds from the $0.19-$0.2 range.

Rationale

Source: Trad­ingView, CHZ/USDT

The Rel­a­tive Strength Index (RSI) took a bull­ish posi­tion while final­ly break­ing above the 59-sup­port. A con­tin­ued sway above this thresh­old would aid the buy­ers in find­ing fresh­er highs on the chart.

Fur­ther, the Vol­ume Oscil­la­tor (VO) marked high­er peaks dur­ing the recent gains. This read­ing hint­ed at a rel­a­tive­ly strong bull­ish move in the last few days.

Final­ly, the DMI lines unveiled bull­ish incli­na­tions but the ADX strug­gled to affirm a strong direc­tion­al trend.

Conclusion

Giv­en the down-chan­nel break­out along­side the gold­en cross of the 50/200 EMA, the buy­ers could aim to strive for more in the com­ing sessions.

A close below the 20 EMA could inval­i­date the buy­ing incli­na­tions. The poten­tial tar­gets would remain the same as above.

Final­ly, traders/investors should keep a close watch on Bitcoin’s move­ment and its effects on the wider mar­ket to make a prof­itable move.

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