Unlocking CHR Technical Analysis Newsletter for a Bullish Breakout

Unlocking Potential: How CHR Technical Analysis Resistance Levels Could Spark a Bullish Breakout

Detailed CHR Technical Analysis

Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily price action of CHR/USDT.
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Total CHR Market Cap:                    $221,581,692
Circulating Supply:                          832,406,451 CHR
Total Supply:                                  832,406,451 CHR
Max Supply:                                  978,064,789 CHR

We are now moving toward the chart.

Overview

This technical analysis provides an in-depth look at the CHR. The analysis focuses on identifying key support and resistance levels, recent price movements, and possible future scenarios. By analyzing these factors, traders will gain insight into the current market condition and make better trading decisions.

Analyzing the resistance zone (Green) around $0.2766-$0.2970 reveals a critical barrier that has been tested several times without a convincing breakout. Above this, the $0.3761 level represents another resistance area where the price has previously seen selling pressure. Higher resistance zones (Blue) at $0.4743 – $0.5170 suggest significant barriers. These levels will be major targets if the price begins a strong bullish trend.

On the other hand, the support zone provides insight into potential unfavorable threats. The support zone (Yellow) at $0.1920 and $0.2137 has served as strong support, as indicated by multiple bounces. Below this, the $0.1619 level provides additional support, indicating potential areas in which buyers may enter. The lowest highlighted support zone (Pink) between $0.1204 and $0.1308 indicates the extent of potential drops if the price breaks through upper supports.

The descending trendline is an important technical element, indicating a descending resistance that the price is currently getting closer. This trendline is critical to determining the next price direction. A break above this trendline, supported by substantial volume, could indicate a bullish reversal, with resistance zones mentioned. However, failure to break above may result in a retest of lower support zones.

The CHR chart shows an important point in its price movement. To make good trading decisions, traders should pay particular attention to support and resistance levels and volume changes.

Daily Chart

CHR is trading under the resistance zone (Green) and the trend line. The price has been trading under the trend line for approximately  112 days. When the price reached the resistance zone (Blue) we saw a correction in the market. It bounced back from the Green zone making it a support and then rejected from the trend line and $0.3761 level. The descending trend line acts as a strong resistance while the price is falling down. Several key technical elements and zones are marked, providing a comprehensive view of the market’s structure and potential future movements. We will discuss the buying plan in the trading setup section.

Key Zones and Levels

Resistance Zone (Green) $0.2766 – $0.2970

This zone is an important resistance area, as proven by multiple attempts in which the price failed to break through successfully. The continuous failure to breach this zone indicates considerable selling pressure or profit-taking by traders at this zone. A breakout over this resistance would indicate a possible shift in market sentiment toward a bullish trend.

Resistance Level $0.3761

Positioned at a higher resistance level, the price has historically struggled to break above $0.3761. This level has served as a barrier during earlier rallies, indicating that it is a zone where traders are likely to put sell orders. Breaking and closing above this level would be a strong indicator of strength, potentially leading to additional upward momentum.

Resistance Zone (Blue) $0.4743 – $0.5170

As the highest indicated resistance zone on this chart, it is a significant target for any strong bullish move. Overcoming this resistance would signal a big bullish breakout, potentially resulting in a sustained higher trend and new highs.

Support Zone (Yellow) $0.1920 – $0.2137

Multiple bounces from this support zone indicate its strength. It indicates high buying activity in this area, making it a key level to monitor for potential bounces. If the price approaches this level, traders might expect a bullish reaction that limits bearish movement.

Support Level $0.1619

This support level is another potential place for price stability. The level’s historical significance suggests that it could operate as a powerful barrier to additional market decreases, offering a cushion during bearish periods.

Support Zone (Pink) $0.1204 – $0.1308

A major lower support zone (Pink) reflects a higher level of buyer activity. A price drop to this level might indicate a more substantial correction, but it also allows buyers to enter at a lower price, potentially leading to an upward trend.

Trend Line

This trendline represents a descending resistance that the price has currently approached but has yet to break. This trendline is critical for determining whether the market will break out or continue to fall.

Volume Analysis

Currently at the time of writing the trading volume is at $16.352M, indicating a lack of strong buying interest at the current levels. A significant increase in volume would be necessary to confirm any potential reversal or breakout.

Recent Price Action

• The chart shows a series of lower highs and lower lows, which indicate a recent downturn.
• The price is currently trading near the decreasing trendline, indicating a potential difficulty of this barrier.
• Recent price action indicates a consolidation period between the Support (Yellow) and Resistance zones (Green), indicating a range-bound market.

Potential Scenarios

Bullish Scenario

If the price breaks above the descending trend line and the resistance zone (Green) at $0.2766 – $2970 with volume it could target the next resistance level at $0.3761. A successful break above the $0.3761 could open the path to a higher resistance zone (Blue) at $0.4743 – $0.5170 as the primary target.

Bearish Scenario

A failure to break above the descending trend line might lead to a retest of the lower support zone (Yellow) at $0.1920 – $0.2137.A break below the support zone (Yellow) could lead to further declines, with the next target at $0.1619 or even lower than last support zone (Pink) marked on the chart at $0.1204 – $0.1308

Technical Indicators

Based on technical indicators on a daily time frame

The relative Strength Index (RSI) value is at 52.61439 (Neutral)
Momentum (10) is at 0.0084 signaling a (Buyl)
MACD Level (12, 26) is at -0.0006 signaling (Buy)
Exponential Moving Average (50): 0.2675 (Sell)
Exponential Moving Average (100): 0.2875 (Sell)
Simple Moving Average (100): 0.2935 (Sell)
Exponential Moving Average (200): 0.2835  (Sell)
Ichimoku Base Line (9, 26, 52, 26): 0.2419 (Neutral)
Volume Weighted Moving Average (20): 0.2519 (Buy)
Hull Moving Average (9): 0.2671 (Sell)

Interpretation

The CHR technical indicators for the 1-day timeframe indicate a neutral market sentiment. Oscillators show mostly neutral signals, with one buy (Momentum) and one sell (Bull Bear Power). The Moving Averages are mixed, with 7 buy signals and 7 sell signals, reflecting an indecisive market. Overall, the indicators suggest balanced buying and selling pressures, pointing towards a cautious trading approach.

This buyer-seller equilibrium indicates that CHR/USDT is at a key juncture, with the price potentially swinging in either way depending on market conditions. Traders should pay close attention to major support and resistance levels and be prepared for potential volatility.

Liquidation Heatmap

The image shows a liquidation heatmap for the CHR (Chromia) cryptocurrency over a one-month period, highlighting price movements as well as locations of high liquidation activity. The heatmap represents liquidation levels using color gradients, with stronger colors, notably yellow-green, signifying higher liquidation volumes. A substantial range of 0.2839 to 0.2874 is highlighted, indicating that this price band is a big liquidation zone. This shows that many leveraged positions are concentrated in this range, which could serve as a resistance level if the price goes into this region, as traders having positions in this zone may experience liquidation pressures.

Trade Setup

We will buy in parts, we will divide our budget into 3 sections, and allocate for buying at each key support mentioned in the chart.

Here are the numbers where you can buy CHR and take profits for the trade.

Buy 1: Current

Buy 2:$0.2137

Buy 3:$0.1619

At buy 3 we will go all in because this is the lowest we are expecting CHR to fall.

TP1: $0.3761

TP2: $0.4743

TP3: $0.5686

Conclusion

CHR (Chromia) is at a critical juncture with key technical elements suggesting potential future movements. The resistance zones at $0.2766-$0.2970, $0.3761, and $0.4743-$0.5170 represent significant barriers, while the support zones at $0.1920-$0.2137, $0.1619, and $0.1204-$0.1308 indicate strong buying activity. The descending trendline highlights a crucial resistance; a break above it, supported by volume, could signal a bullish reversal. Failure to break above might lead to retesting lower support zones.

The recent price action and trading volume suggest consolidation, indicating a range-bound market. The liquidation heatmap emphasizes the $0.2839-$0.2874 range as a significant liquidation zone, acting as a potential resistance level. Technical indicators show a neutral sentiment, reflecting balanced buying and selling pressures. Traders should monitor key levels and volume changes to make informed decisions and anticipate potential volatility.

Investment Outlook

Given the current market conditions, CHR presents both opportunities and risks. The identified key levels should guide investors in making informed decisions. Caution is advised until a clear trend is established.

Your Essential Trading Newsletter

This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.

Stay tuned to The Crypto City Trading Newsletter for more in-depth analyses, market insights, and expert guidance. As always, we strive to empower you with the knowledge and tools needed to navigate the fast-paced world of cryptocurrency trading. Happy trading!

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The Crypto City Trading Team