CHZ Breaks Formidable Resistance at the Brim of the Cup Pattern

Crypto netizen Vegeta shared the Chiliz (CHZ) trading chart on Twitter and illustrated how CHZ broke a formidable resistance level that lies at $0.1444.

When considering the chart below, CHZ tested this resistance level in mid-December. However, CHZ did not find the momentum to break through the resistance. Despite the RSI being at 56.14, neither overbought nor oversold, the market corrected the prices, as CHZ hit the upper Bollinger band.

CHZ/USDT 4-hour Trading Chart (Source: TradingView)

After CHZ failed to break this resistance in mid-December, the currency started forming a cup and handle pattern, as shown in the chart above. When considering the first half of the cup where CHZ was making lower lows, the bulls tried their best to consolidate CHZ.

Although during the initial stages of the fall, the bulls were able to help CHZ move sideways, towards the latter part of the fall, the bears were too strong for the bulls. Hence, the bulls’ sideways movement tilted down and finally, the bears won and plunged the price to a low of $0.0967.

During the initial stages of forming the second half of the cup, RSI was setting higher highs simultaneously with CHZ, which meant the bullish trend was on. However, after a while the RSI was consolidating when CHZ was setting higher highs, referring to a reversal of the trend.

Currently, CHZ has broken the formidable resistance while forming the handle.

Moreover, the Bollinger bands are widening, which shows that there could be more volatility in the future.

If the bulls push hard CHZ will be able to hit resistance 1. Contrastingly, if the bears take over the market, CHZ may tank to Vegeta’s support level but if it fails to hold, then CHZ will fall to support 1.

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