Can CAKE [PancakeSwap] bulls bake a rally after seeing strong moves post…
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
The day prior to this’s drama however, PancakeSwap’s token CAKE did have a bullish outlook in late March. The rejection on the $11 space left a bitter style within the mouths of long-term buyers of CAKE.
On the time of writing, the token was within the midst of a good bounce from a degree of assist, following Bitcoin’s bounce from the $30k mark.
CAKE- 12 Hour Chart
Nearly precisely a 12 months in the past, in early Might 2021, CAKE was buying and selling at $42 and buyers eyed the $50 degree with pleasure. The value couldn’t push previous $44.2, and the token slumped to $10. In late August, CAKE swapped fingers at $29, however the bulls may drive the rally no greater, and a long-term downtrend was as soon as extra affirmed.
As soon as extra in mid-March, the bulls seized the initiative, and CAKE rallied from $5.44 to $10.9 in April. The $10.9-$11.2 is a crucial zone of resistance, as soon as that the bears merely couldn’t contact.
Up to now six weeks, the $7.5-$8 space has been vastly vital as CAKE has seen robust strikes after flipping this space. As issues stand, this zone is an space of provide. Furthermore, the Fibonacci retracement ranges confirmed this space to have confluence with the 38.2% retracement degree at $7.51. Due to this fact, within the subsequent week or two, the $6.7-$7 space and the $7.5 zone are prone to function bearish bastions.
The RSI descended under impartial 50 in April and dived as little as 22.2 the day gone by. On the time of writing, CAKE appeared to bounce from the $5.58 assist degree and will revisit $6.7 and $7.5. The Superior Oscillator was additionally under the zero line, to point out robust bearish momentum.
Alternatively, the OBV has made a formidable transfer greater through the March rally, though it did development downward in April and Might. Due to this fact, whereas the sellers do have the higher hand, there’s the faint risk that this could change ought to bulls recapture $7.5.
The market construction flipped decisively bearish as the worth fell under $7.5, and the development dictates that one ought to search for promoting or shorting alternatives on the crypto asset. A transfer above $7.5-$8 may shift this bias, however a bull lure can’t be discounted as market sentiment remained fearful.