The extended correction phase or downtrend in the CAKE token has plunged its price to an important support zone around $11. The token price is still trying to sustain above this level; however, a positive turn in the RSI value, suggesting the buyers are getting active again.
CAKE/USD Daily Time Frame Chart
Source- CAKE/USD chart by Tradingview
Past Performance or Trend-
In September, the CAKE token initiated a moderate correction phase, which plunged the price to $17.5 support. The token tried several attempts to bounce back from this level; however, the intense selling pressure in the market breached this support level, indicating more fall in this token.
Breaching The Nearest Resistance OF $12.6 Should Support A Recovery Phase In CAKE Token
The CAKE token price is dropped to the crucial support zone around the $11 mark. This support zone goes ways back to July 21 and March 21, which initiated some remarkable rallies in this token.
For the recent price fall, the token is about to retest this support zone for the third time, and in addition to that, the RSI line shows a significant bullish divergence in its chart, suggesting a bullish reversal.
However, on a contrary note, reversing a well-established trend is never an easy job, and therefore, the crypto traders looking for entry opportunities at this level should follow strict risk management. Furthermore, the safe traders can wait till the price breach the nearest resistance of $12.6 before taking a long entry.
-The CAKE token shows a bearish alignment among the crucial EMAs(20, 50, 100, and 200), supporting a strong downtrend.
-As mentioned above, the daily Relative Strength Index(35) though moving in the bearish zone, has displayed a clear bullish divergence, indicating the increasing strength in buyers.
-According to traditional pivot levels of the 4-hr chart, the token traders can expect the nearest resistance for the CAKE price at $11.6, followed by $12.6. As for the opposite end, the support levels are $10.68 and $9.72.
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