The recent correction phase in the crypto market tumbled the CAKE price by 31.4%, bringing it to the 0.618 Fibonacci retracement level($7.5). The buyers reverted the coin price from this support suggesting the traders’ sentiment has flipped from selling the rallies to buying on dips. The altcoin is gradually nearing the $10 resistance for another breakout.
Key points:Â
- The CAKE chart shows the morning star candle in the weekly time frame chart
- The 200-day EMA aligned with $11 mounts a strong resistance
- The intraday trading volume in the CAKE token is $172.8 Million, indicating a 3.82% loss.
Source- Tradingview
On March 17th, the Pancake(CAKE) price gave a massive breakout from a four-month-old falling wedge pattern. The sustained bullish momentum drove a parabolic rally to the record high of $11.
However, the recent sell-off in the crypto market plunged the CAKE price to 0.618 FIB($7.5), registering a 30% devaluation. Furthermore, the discounted price attracted many buyers and rebounded the price with an inside candle.
The post-correction rally drove the CAKE price above the shared resistance of $9 and 100-day EMA, intensifying the buying momentum. If buyers sustain this breakout, the altcoin will pump 7% higher to $10.
A daily-candlestick closing above this swing high resistance($10) would indicate the resumption of the bullish rally.
Alternatively, a reversal from the $10 resistance would question the reliability of wedge breakout and may sink the coin price back to $7.45.
Technical analysis
EMA: The declining 200-day EMA indicates an overall bear trend, whereas the flattish 20, 50, and 100-day EMA reflects a short-term range rally. However, a recent recovery regained these flat EMAs, providing an extra edge to longer traders.
Vortex indicator: the VI+ and VI- indicator reflects a bullish crossover, offering additional confirmation. Moreover, the immediate spread between this line highlights strong buying in the market.
- Resistance levels- $10, $11
- Support levels- $8.45 and $7.5
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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