The rising Pancake(CAKE) price is narrowing within a falling wedge pattern. This recovery rally would soon tag the overhead resistance of $10, and a bullish breakout from this ceiling will surge it to $12.74. However, the interested buyers should remain cautious as possible fallout from the wedge pattern remains on the card.
Key points
- The CAKE chart projects the morning star candle in the weekly time frame chart
- The 50-and-100-day SMA is on the verge of giving a bullish crossover
- The intraday trading volume in the CAKE token is $187.7 Million, indicating a 3.93% loss.
Source- Tradingview
The CAKE/USDT technical chart displays falling wedge patterns in the daily time frame chart. The recent correction from the $10 resistance had discounted the coin price by 30% and plunged it to the 0.618 Fibonacci retracement level.
Furthermore, the CAKE price rebounded from the $7.5 support, suggesting traders’ perspectives have changed from selling rallies to buying dips. The V-shaped recovery has entirely regained the correction phase losses and soared the price by 26%.
The sustained buying will rechallenge the previous swing’s high resistance of $10, indicating a new bull rally is about to begin. If buyers offer a strong breakout and sustainability above $10, the traders can expect the next significant supply zone to be 20% higher at $12.75.
Currently, the CAKE price trades at $9.35, with an 0.75% intraday gain. However, until the falling wedge pattern is intact, the traders risk a free fall to the March low at $5.23.
Technical analysis
SMA: The rising 50-day SMA is about to cross above the 100-SMA line. This bullish crossover could attract additional buying and bolster the $10 breakout.
Vortex indicator: The instant spread between the VI+ and VI- slope reflects strong bullish momentum.
- Resistance levels- $10, and $12.7
- Support levels- $7.46 and $5.23
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/cake-price-analysis-cake-price-strikes-10-resistance-aiming-20-roi/