Chiliz (CHZ) completed a sell-side liquidity sweep on the 4-hour chart on Tuesday, January 27, a technically significant move that often precedes short-term trend reversals, according to crypto analyst Crypto Patel.
The development cleared downside liquidity and marked an early shift in market structure, placing CHZ at a critical inflection point for traders.
Following this liquidity sweep, CHZ has displayed a bullish Market Structure Shift (MSS), which indicates that there has been a change in market structure from bearish to bullish.
Price is currently consolidating near a breaker level that has confluence with a daily timeframe order block, which is considered a bullish sign.
Also Read: Chiliz Price Outlook: CHZ Tests Critical Support with Bullish Momentum Signals
From a positioning point of view, the area around $0.0543 is an area where traders are waiting to enter long positions, as long as the price continues to respect the breaker formation. As Crypto Patel explains, there remains a clean price imbalance, which means there is room to run if support continues to hold.
Source: Crypto Patel X Post
The price-projected upside targets are located around $0.0589, $0.0643, and $0.0668. At these price levels, there may be some degree of profit-taking as the price reaches successive resistance areas.
These targets are based on technical analysis and should not be seen as certain; they depend on the market maintaining its current bullish trend.
Risk management is still at the core of this structure. This bullish structure would lose strength if this price breaks down through the breaker and daily order block confluence. If this price breaks down through the $0.049 level, this structure would be negated, and the long bias would not be valid.
Based on TradingView statistics, as of Tuesday, January 27, CHZ has already formed a higher high and higher low pattern after undergoing a consolidation phase that started as late as December. The recent breakout above the $0.055 mark indicates improving market participation.
Source: TradingView
The momentum indicators are showing signs of strength with minor cooling. The Moving Average Convergence Divergence Indicator is still in positive territory, though the bars on the histogram are decreasing, which indicates that the upside momentum is slowing down. The Relative Strength Index is currently between 60 and 65, which is under bullish control.
Also Read: Chiliz (CHZ) Set for a Major Move Beyond $0.052: Will It Soar or Stall?
Also read: Hyperliquid Just Surpassed Binance in Crypto Liquidity?
