chili [CHZ] Investors can take advantage of these levels if November BTC’s reaction…

• CHZ could lose the current support at $0.1330 and drop to $0.0995.
• If BTC recovers after this year’s FOMC meeting, it could pull CHZ higher.
• Improved sentiment could see the bulls break out of $0.1666, which would invalidate the above forecast.

chili [CHZ] has been less attractive to investors lately as the price has fallen. At press time, CHZ was trading at $0.1367, close to the 0% Fib level ($0.13330).

Interestingly, CHZ dipped below $0.136 after that Bitcoin fell below $17.18k. Historically, BTC has always recovered after an FOMC meeting and an announcement was expected at the time of writing on December 15th.

However, the FOMC announcement last November prompted an erratic reaction from BTC. It rose aggressively for 12 hours and then plummeted. A similar scenario could see BTC rally after the FOMC announcement, which could pull CHZ higher.

However, if the November trend repeats, CHZ will collapse as BTC falls after a short-lived surge. The coin could thus drop to $0.1221 or $0.0995.

Has CHZ bottomed or will it drop even lower?

Source: TradingView

According to technical indicators, Chiliz bears still have what it takes to continue lower. The Relative Strength Index (RSI) was forming a gentle slope towards the oversold territory at the time of writing. This showed that buying pressure was easing, giving sellers more room to maneuver.

On Balance Volume also made a slight downward move, suggesting that trading volume has decreased significantly. This showed that the trading volume at press time was not enough to increase buying pressure. As a result, the pressure to sell increased.

Therefore, CHZ could drop to $0.1221 or $0.0995 after breaking the immediate support at $0.1330. Thus, $0.1221 and $0.0995 could be short selling targets.

However, a break above $0.1666 would negate the above forecast, especially if BTC continues to trend higher in anticipation of the FOMC and CPI announcements. In that case, CHZ could target the resistance at $0.1874 after breaking out above $0.1666.

CHZ saw an improvement in weighted sentiment

Source: Santiment

Corresponding HolyWeighted sentiment for CHZ improved after slipping into positive territory.

However, the historical improvement in weighted sentiment did little to help CHZ slide lower. An example of this was the surge in positive sentiment around November 24, which coincided with the decline in the coin’s price. Still, investors should keep an eye on sentiment.

In addition, the number of active addresses has increased over the last 24 hours. This showed that more accounts were involved in trading CHZ, which could mean that the trading volume could increase in the short-term.

Increased trading volume would add buying pressure and start an uptrend. So it pays to keep the metric on your watch list. But most importantly, investors should follow Bitcoin’s performance to get a clear direction for Chiliz’s eventual move.

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