Chiliz/Tether Market Overview

Summary
• Price of CHZ/USDT rose from 0.03299 to 0.03399, gaining 3.05% over 24 hours.
• Volatility expanded as price tested 0.0350–0.0343 levels.
• Momentum remained positive, but RSI showed early signs of overbought conditions.

The Chiliz/Tether (CHZ/USDT) pair opened at 0.03299 on November 7 at 12:00 ET, reached a high of 0.03554, a low of 0.03320, and closed at 0.03399 on November 8 at 12:00 ET. Over the 24-hour period, the total volume was approximately 89,838,445 CHZ, and notional turnover was roughly $3,076,482. The pair exhibited moderate bullish momentum and key resistance levels were clearly tested.

Structure & Formations

The 15-minute candlestick chart showed a strong bullish bias throughout the late evening and overnight hours, with a sharp reversal from bearish to bullish sentiment around 21:30 to 21:45 ET. A distinct bullish reversal pattern emerged at 21:30 ET, with a large-bodied candle engulfing the prior bearish candle, indicating possible short-term support. The pair also formed multiple higher lows and higher highs between 20:00 and 04:30 ET, signaling a developing bullish structure. A notable bearish correction emerged post 05:00 ET, pulling price back to the 0.0340–0.0336 range. A key support level appeared at 0.03360, which held multiple times over the 24-hour period.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart indicated a strong bullish crossover, with price staying above both throughout much of the session. On the daily chart, the 50-period MA was slightly below the 100-period MA, suggesting the longer-term trend remains neutral to mildly bearish. However, the 20-period MA crossed above the 50-period MA just before the 21:30 bullish reversal, reinforcing the short-term bullish momentum.

MACD & RSI

MACD on the 15-minute chart remained above the signal line for most of the session, indicating strong bullish momentum. The histogram expanded during the late evening surge and contracted during the early morning pullback. RSI rose above 60 during the 21:00–23:00 ET rally, hinting at overbought conditions. While RSI did not hit extreme overbought territory (above 70), it showed signs of divergence as price pulled back after 05:00 ET. This suggests the rally might not be sustainable at current levels without further support.

Bollinger Bands

The price remained well within the Bollinger Bands throughout most of the session, with the bands expanding after the 21:30 ET breakout. Price traded near the upper band during the late-night rally and retreated toward the middle band during the morning correction. The 20-period Bollinger Bands indicated moderate volatility throughout, though the recent expansion suggests traders should anticipate potential consolidation or another move toward the upper band.

Volume & Turnover

Volume spiked dramatically between 21:30 and 21:45 ET with a massive 25.2 million CHZ traded, coinciding with the breakout at 0.03480. This high-volume bar confirmed the strength of the reversal. Notional turnover also surged during this time, reaching over $850,000, which is one of the largest single 15-minute notional volumes observed in the 24-hour window. Volume decreased during the early morning correction, suggesting the move back toward 0.03360 was met with less conviction.

Fibonacci Retracements

Applying Fibonacci retracement levels to the key swing from 0.03320 to 0.03554 showed price testing the 0.03480–0.03490 area (61.8% retracement) during the late-night rally. Price subsequently pulled back toward the 0.03360–0.03370 range (38.2% retracement), where it found support multiple times. The 0.03360 level could act as a critical support zone ahead of the next 24-hour window.

Backtest Hypothesis

Given the recent emergence of a Bullish Engulfing pattern at 21:30 ET and the confirmation via volume and momentum indicators, a backtest strategy could be constructed around this pattern. The strategy would involve entering a long position at the close of the engulfing candle and holding for five days. To implement this effectively, the specific exchange symbol (e.g., BINANCE:CHZUSDT) must be used to ensure accurate pattern identification. Once the pattern is correctly retrieved, a historical test of the 5-day-hold exit could be run to determine profitability and risk-adjusted returns. This aligns with the observed technical conditions and supports a data-driven, rule-based entry approach.