CAKE Price Consolidates Within Ascending Channel, Eyes Breakout to $28

By Domenic
Published August 24, 2021 Updated August 24, 2021
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CAKE Price Consolidates Within Ascending Channel, Eyes Breakout to $28

By Domenic
Published August 24, 2021 Updated August 24, 2021
  • CAKE price has risen 27% over the last week
  • CAKE Price has been stuck within an ascending channel
  • 50MA has held as support for a month

CAKE Eyeing Breakout to $28?

Pancakeswap (CAKE) price has been in a strong uptrend for nearly a month. The rest of the cryptocurrency market has been going berserk as many coins have been surpassing their all time highs. CAKE price has been working its way up to its major resistance zone ever since the start of August. Compared to other coins in its class, CAKE has yet to fully breakout and experience a parabolic push. As long as BTC stays steady, CAKE should soon experience a large parabolic push back near $30. 

Shown in light blue, we can see how price has respected the ascending channel extremely well over the last month. It has kept price very tight with little swings. Each time CAKE has touched either trend, it has gotten pushed to the opposite. At the time of writing, CAKE price is attempting to breakout of the top trend line of its channel.

Along with this top trend lies the major resistance area found at $24.56-$26.53. If bulls manage to clear this zone along with the top trend line, we may see CAKE surge to its given targets. 

Pancake Swap Price Analysis: CAKE/USDT 4 Hour Chart

TradingView Chart

Consolidation within this resistance zone is likely to occur as its one of the largest areas to break for CAKE to go parabolic. In this case it fails to hold this resistance zone, price will first find support at the bottom trend of its channel. This area is also near a major support level of $22.98. If bears push price down to this level, there will likely be some type of bounce. In addition to these two supports lie the 50MA. This MA has held price up for a month. If at any time CAKE breaks below this, expect a downtrend to occur.

While looking at the Stochastic RSI, we can see that strength is hanging out within the over bought territory. CAKE must break out of its channel soon or it will begin to lose strength. Breaking below the 80 value will likely cause a retracement to occur. The RSI has been attempting to break a downtrend line for many weeks now. For CAKE to really see some explosive growth, price must fully break this downtrend line & aim towards the overbought region. 

CAKE Intraday Analysis

  • Spot rate: $25.33
  • Trend: Bullish
  • Volatility: High
  • Support: $24.56
  • Resistance: $26.53
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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.
About Author
Domenic
134 Articles
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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