Chiliz (CHZ) is surging but still faces key resistance around $0.05, where the price has been rejected and reversed several times before.
The short-term upward trend of CHZ is accompanied by a surge in volume and open interest, indicating strong speculative capital inflow. However, the crypto market remains sensitive as Bitcoin has yet to break through a major resistance level, making the risk of a "false breakout" still noteworthy.
- CHZ increased 16.7% in 24 hours and 25.6% in 7 days, Open Interest rose rapidly.
- 1D technical analysis leans towards an uptrend, but $0.05 is a key supply zone.
- Priority is to wait for confirmation: the weekly candle should close above $0.051 before buying on the breakout.
CHZ surged thanks to speculative capital inflows and a boom in Open Interest.
CHZ recorded a rapid price increase, along with a sharp rise in Open Interest, reflecting increased leverage demand and expectations of a continuation of the short-term trend.
Data from CoinMarketCap shows CHZ has increased 16.7% in 24 hours and 25.6% in 7 days. Simultaneously, Open Interest has surged 66% in just 24 hours as many speculative traders seek to capitalize on the momentum.
According to Coinalyze, Open Interest has nearly tripled from $12 million to $33 million since December 19th. A rapid increase in OI usually indicates a heating market, but it also signifies a risk of significant volatility if a liquidity liquidation occurs.
On social media, trader Johnny Woo stated that CHZ is showing a buy signal on the 3-day timeframe. XEM the post on X and Johnny Woo's account. He also questioned whether the World Cup could be a strong enough catalyst to help CHZ break through its multi-month resistance zone.
CHZ buyers are testing the $0.05 resistance level.
On the 1-day timeframe, the price structure of CHZ has leaned towards an uptrend, but the most challenging target is to decisively break through the supply zone around $0.05.
The 1-day timeframe shows that CHZ has an upward structure after a shift from December 9th. A subsequent breakout of this structure occurred on December 19th, turning the local resistance zone into support.
After testing the 0.28 USD Dip , CHZ surged approximately 56% in just 13 days. The OBV has been steadily increasing over the past month, reflecting improving buying pressure and a more stable inflow of funds compared to previous weak rallies.
The bullish crossover of the moving Medium also supports the possibility of a trend turning positive. However, what needs to be verified is whether the momentum and demand are strong enough to sustain the upward move above $0.05, instead of just touching resistance and then reversing.
Should you buy when CHZ breaks through resistance?
Technically, the signal supports a breakout buy strategy, but it's only reasonable with clear confirmation because the broader market still carries the risk of a reversal.
From a purely technical analysis perspective, the increasing volume and breakouts of the structure are relatively convincing signals, indicating momentum is on the buying side. This makes the scenario of a "push" towards the $0.05 level more plausible.
However, the broader market context makes this rally warrant caution: Bitcoin is stuck below the $90,000 resistance zone, and fear is widespread in the crypto market. In 2025, CHZ followed a similar pattern several times: a sharp increase, touching the $0.05 supply zone, and then gradually giving back gains.
If you trade with the trend, prioritizing a "confirm before buying" strategy can help reduce the risk of buying right at resistance, especially during periods of rapidly increasing Open Interest, which can easily lead to strong two-way swings.
Signal to watch: only turn bullish if the weekly candle closes above $0.051.
Until CHZ clearly breaks out above $0.050–$0.051, a cautious scenario remains preferred; a weekly candle closing above $0.051 would reinforce trend confirmation.
The risk management perspective is not to "chase" when the price approaches the $0.05 level unless there is a convincing breakout. A weekly candle closing above $0.051 could help alleviate doubts about rejection at the supply zone, while confirming sufficient buying pressure to absorb profit-taking.
As the price approaches $0.05, traders can look for bearish reversal signals to protect profits on existing Longing positions. However, opening a Short position could be risky as there is still a possibility of sideways consolidation just below the resistance before breaking upwards.
Conclude
The CHZ rally is approaching a key resistance zone, where traders holding Longing positions may consider taking profits as planned.
If the goal is to buy on a breakout, a safer scenario is to wait for the weekly candle to close above $0.051 for confirmation before entering a trade, rather than buying when the price is still "touching" the supply zone of $0.05.
Frequently Asked Questions
Why has CHZ surged in the short term?
CHZ surged as buying pressure improved and speculative capital entered the market, evidenced by daily/weekly price increases and rapidly rising Open Interest, suggesting that many new Derivative positions were opened to capitalize on the momentum.
How important is the $0.05 price level for CHZ ?
The $0.05 level is a supply/resistance zone that has repeatedly seen the price rejected in the past. As the price approaches this zone, profit-taking pressure and defensive selling typically increase, raising the risk of a reversal unless there is a clear breakout.
When is a breakout signal from the CHZ more reliable?
The signal is usually more reliable when CHZ breaks through the 0.050–0.051 USD range, and especially when the weekly candle closes above 0.051 USD. This confirms that the buying pressure is strong enough to hold the price above the previous resistance zone.
