- Chiliz price is currently bouncing off the 50% Fibonacci retracement level at $0.336.
- A correction to $0.323 is likely before CHZ continues to scale higher.
- A breakdown of the $0.318 support floor will invalidate the bullish thesis.
Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.
Chiliz price awaits bulls’ comeback
Chiliz price failed to hold above the 50% Fibonacci retracement level at $0.336 on September 14, which led to a pullback below it. After this failed attempt, CHZ crept above this resistance level on September 15 and is currently retesting this support barrier.
A quick rally is apparent, but it might arrive after a retracement to either the 62% Fibonacci retracement level at $0.329 or the 70.5% Fibonacci retracement level at $0.323.
This potential correction will collect the liquidity resting below the $0.329 swing low in the form of sell stops. The resulting move will allow the market makers to fill their orders, indicating that CHZ is primed for a leg-up.
Therefore, the resulting uptrend will likely push Chiliz price to climb freely and retest the range high at $0.367.
In a bullish case, Chiliz price could make a run at the $0.381 resistance level.
CHZ/USDT 4-hour chart
On the other hand, if the Chiliz price fails to make a comeback at the 70.5% Fibonacci retracement level at $0.323, it will indicate a weakness among buyers and increased selling pressure. In such a situation, if CHZ produces a swing low below $0.318, it will invalidate the bullish thesis.
This move could trigger Chiliz price to crash to $0.314 and even retest the range low at $0.305.