DeFi Tokens Reach All-Time Highs as Chiliz (CHZ) Looks to Follow

[Tunir Baap]

Chiliz (CHZ) has been increasing at a slow pace since the end of May. It is currently approaching the first of two major resistance levels, a breakout above which could trigger a sharp upward movement.

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Near Protocol (NEAR) is attempting to initiate a reversal at the previous all-time high level and has broken out from a short-term corrective pattern.

While Terra (LUNA) reached an all-time high price on Oct 4, it has broken down from its structure, putting its bullish trend in doubt.

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CHZ
CHZ has been increasing alongside an ascending support line since May 23. As long as the support line is intact, the trend is bullish and increasing at the rate of the line.

The bullish trend is also supported by technical indicators, more specifically the MACD and RSI.

The MACD is increasing and has nearly crossed into positive territory. The indicator is created by a combination of short- and long-term moving averages (MA), and the reading means that the short-term trend is gaining on the long-term one, but has yet to surpass it.

On the other hand, the RSI has already moved above the 50 line (Green icon). This often means that the trend is bullish. The previous time it occurred was on July 24, preceding the upward movement to $0.46.

The main resistance is at $0.465. It is created by the 0.382 Fib retracement resistance level and the Sept highs. If CHZ manages to move above it, it could increase considerably.


CHZ Ascending support
Chart By TradingView
The shorter-term six-hour chart shows that CHZ is following an even steeper ascending support line. This led to the $0.38 high on Oct 7.

However, the higher prices could not be sustained, and the token created a long upper wick (red icon). The wick is considered a sign of selling pressure, since the higher prices could not be sustained.

Furthermore, it validated the $0.355 area as resistance, since the same area rejected CHZ on Sept 10.

Therefore, there are two resistance levels left to clear so CHZ can begin a considerable upward movement.more