CAKE token price analysis: CAKE token races to supply zone

CAKE token price has been on a rise following the overall bullishness in the cryptocurrency market.
The CAKE token price was trading in a range on a daily time frame, before breaking out of it, as a result, it has formed a flag and pole pattern.
The pair of CAKE/BTC is trading at the price level of 0.0001710 with an increase of 1.79%.

The CAKE token price, as per the price action, is super bullish as it broke out of the small range after a long consolidation. As of now, the token price is resting at the long-term demand zone. CAKE token price is now resting at the breakout zone and therefore a bullish candlestick formation at the demand zone can trigger bullish moves in upcoming days.

The cake token price traces back to the support area

As of now, the token is trading above the 50 Moving Average and 14 Simple Moving Average. Therefore moving forward the token price can be seen taking support at their Moving Averages. The CAKE token price broke the supply zone with the strong bullish candlestick pattern, confirming the breakout.

The CAKE token price is currently trading below the upper band of the Bollinger band indicator after facing rejection. Despite the breakout, the token price is yet to cross the 100 Moving Average and therefore the investors should remain cautious as moving upwards the token price can face strong rejection.

The CAKE token price is forming a flag and pole pattern on a daily time frame

On an daily basis, the RSI curve is trading at a price of 53.72 as the token approaches the supply area. Currently, the RSI curve has not crossed the 20 SMA. On a daily basis, the token is forming higher low and higher high formations, indicating bullishness in the longer time frame. The CAKE token price moves when it breaks out of the small range and the RSI curve rises.

With a strong bullish candlestick pattern, the CAKE token price rose above the supply zone. The token broke through the super trend sell line, resulting in a buy signal. The CAKE token is currently trading above the super trend buy signal line.

ADX curve has dipped out of the 25 mark as the token price gave a breakout of an important supply zone. As of now the ADX curve is facing upwards and is gradually increasing. This is a positive sign for the CAKE token price. There can be more bullish momentum in the upcoming days as the ADX curve suggests. Before the recent breakout, the ADX curve slipped below the mark of 20.

Conclusion: The CAKE token price is bullish as the price action suggests. On a daily time frame, the token price is seen resting at the demand zone. The technical parameters also suggest a bullish move in the price of the CAKE token price. It remains to see if the CAKE token price will break out of the small range supply zone on an hourly time frame or fails to do so.

Support: $3.5 and $3.9

Resistance: $4.1 and $4.8

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss