Chiliz (CHZ) kept its momentum this week, shrugging off a potential short-term pullback and pushing higher as traders eye a key supply zone from early 2025. Quick market snapshot - Price: ~$0.058 - 24h: +2.49% - 7d: +27.7% What happened CHZ did not fall to the $0.05 area after a bearish divergence showed up on the 4-hour chart — a scenario AMBCrypto had flagged as possible. Instead, the sports-focused blockchain token extended its rally, breaking above the $0.05 level that had acted as resistance for nearly a year. Technical and on-chain signals - OBV breakout: Crypto trader IncomeSharks noted the on-balance volume exploded during CHZ’s move past $0.05, confirming heavy buying pressure behind the breakout. - Momentum readings: The Money Flow Index (MFI) sits above 80 on the daily chart, signaling strong buying interest, while average trading volume has been rising over the past month. - A/D indicator: The Accumulation/Distribution line hints at a possible bearish divergence, which could trigger a minor pullback — but not necessarily a deep retracement. - Higher-timeframe bias: After clearing a key resistance, the medium-to-long-term outlook remains bullish unless daily structure is broken decisively. Key levels to watch - Immediate upside target: $0.064–$0.072 (supply zone from February 2025). A clean breakout above this region would likely attract swing-buyers. - Support cluster: $0.040 and $0.035 should provide initial support if sellers re-emerge. - Bullish invalidation (daily): A sustained drop below $0.027 would negate the bullish structure on the daily chart. Liquidations and volatility risk Data from liquidation maps point to clusters of high-leverage long liquidations below the current price, suggesting a potential liquidity hunt toward $0.05. With cumulative long leverage elevated, short-term volatility and a squeeze down to flush those positions remain plausible — traders should be prepared for choppy action. Ecosystem update Chiliz announced it joined the MiCA Crypto Alliance, supporting the review and iXBRL conversion of crypto white papers across the Chiliz and fan token ecosystem — a move that may help with regulatory transparency and project documentation. Bottom line CHZ’s recent breakout looks supported by volume and OBV, and the path higher points to the $0.064–$0.072 supply zone. Still, short-term volatility — driven by leveraged positions and possible liquidity hunts — could produce pullbacks into the $0.035–$0.040 area. For a bearish thesis on the daily timeframe, watch for a convincing break below $0.027. Disclaimer This article is for informational purposes only and is not financial, investment, or trading advice. Cryptocurrency trading carries high risk; do your own research before making decisions. Read more AI-generated news on: undefined/news

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