In this new Wednesday crypto nugget, the last one of this year 2022, we will focus on CHZ, the main cryptocurrency in the Socios.com app. In the current context, it is complex for an altcoin to overcome all its resistances while the whole market is moving down. For CHZ, many investors bet on VM for an upward recovery of the asset. However, this international event had no influence on the proceedings. So what is the current asset situation? Without further ado, let’s head over to TradingView to analyze this cryptocurrency.
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CHZ heading towards a key level
First, we can take a step back on the asset with the weekly scale, which allows us to understand the development of the rate during the year 2022. First, we can see the rejection of CHZ for several months on a resistance at $0.284. This was the case again in late October, before triggering a new bearish leg by losing one key level of $0.164 and $0.134.
Now we can see the strong downtrend with the asset heading straight for support at $0.093/$0.097. It will be necessary see the reaction CHZ on this zone, as a rebound of small amplitude and a breakdown of this zone will demonstrate the strength of the sellers on the buyers. This will open the doors for the price to return to lower levels, such as $0.07 initially.
As for the hope of an upward trend reversal, the situation is quite different as the asset needs to overcome certain technical levels. To hope for the establishment of a bullish trend in the medium term, it will be necessary to witness a recovery at $0.164, which is in concert with the trio of EMA. As long as these levels are not restored, the likelihood of CHZ returning to higher levels is relatively low.
Is the reintegration of an old series underway?
On the daily scale, the downward trend is also in order. Since the loss of MA100 as well as EMA200, the daily EMA13 has never been taken up in the market. Attempting to hold above $0.133, the price did not get much breathing room and facing sales pressure. Now CHZ has returned to the area where it developed between May and August 2022 with a lower limit being the support identified on a weekly scale and the upper limit being the technical level recently lost.
After just breaking down from its low a few days ago, the downtrend is still in place. The goal is, as mentioned on a weekly scale, to monitor the strength of the rebound if the price comes to find its support zone. It is quite possible to have a lateralization of the asset for several weeks within the same interval, which would reflect investor uncertainty at the start of 2023.
As long as the asset does not rise out of its range and regain the trio of EMAs, there is no point in hoping for a return to $0.164. So to conclude our remarks, let’s take a look at the CHZ/BTC pair to understand the balance of power and the situation of the altcoin.
CHZ Underperform Against Bitcoin?
Faced with the king of cryptocurrencies, the situation is similar as the asset is in a situation of underperformance with a strong downward trend since the second half of November. At the moment is CHZ is on a pivot zone was formerly a resistance. You need to keep an eye on the current level as a breakdown of it will cause CHZ to continue its underperformance against Bitcoin.
The situation is complex, as an asset in this situation tends to underperform when Bitcoin moves up, and when it falls, the asset is less likely to hold up and maintain key supports. To hope for an upward recovery of the CHZ against the dollar, a recovery in the price of the current support would be good news.
Here we are at the end of this analysis of CHZ. As you can see, this end of 2022 ends with a strong downtrend on various time frames. To hope for an upward reversal, there is still a long way to go as the asset needs to overcome a certain number of key levels. Against Bitcoin, the situation is unfortunately the same with the price having been worse for several weeks.
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