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- Chiliz price declines by 13%, making it the largest red day this year.
- CHZ could decline an additional 20% in the short term targeting $0.10.
- Invalidation of the bearish thesis would come from a hurdle above $0.179.
Chiliz price shows concerning bearish signals. There are some reasons to believe a downtrend is already underway.
Chiliz price has a strong bearish presence
Chiliz price witnessed a 13% decline, making it the largest red day of 2023. The bearish influence should concern investors as it has reached significant levels of support, one being the 8-day exponential moving average and two, trendlines that provided resistance throughout the previous rally. The CHZ token has also breached a previous swing low of $0.134, which subtly changes the market structure. Considering these factors, the Chiliz token may have already started the downtrend.
Chiliz price currently auctions at $0.137. At the time of writing, the bears are trying to solidify the bearish narrative by establishing a daily candlestick close beneath the 21-day simple moving average (SMA). If successful, the CHZ token could decline as low as the $0.100 barrier, where the 21-day SMA crossed with the 21-day SMA and catalyzed the 63% rally this winter. The scenario creates the potential for a 20% decline in market value.
The Relative Strength Index compounds the bearish idea as the recent swing high at $0.179 shows a divergence between the previous swing high near the $0.140 zones.
CHZ/USDT 1-Day Chart
Invalidation of the bearish thesis could occur, but the bulls will need to hurdle the current swing high at $0.179. In doing so, the bulls will likely be on pace to target the $0.200 zone. The Chiliz price would increase by 44% if the bulls were to succeed.