CAKE Price Analysis: Double Top Pattern Fallout Teases 18% Fall In CAKE

By Brian Bollinger
April 26, 2022 Updated April 26, 2022
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CAKE

Last weekend the higher price rejection candle at $10 resistance indicated the traders are aggressively selling on a higher level. Thus, the resulting reversal dumped the Pancake(CAKE) price back to $7.6 support with the formation of a double top pattern. A possible reversal will trigger another 14.4% fall.

Key points: 

  • The CAKE reflects a 12% loss in the past 24hr
  • A 50-and-100-day SMA performs a bullish crossover
  • The intraday trading volume in the CAKE token is $172.8 Million, indicating a 3.82% loss.

CAKE/USDT ChartSource- Tradingview

Over the past two months, the Pancake(Cake) price reverted from the $10 resistance twice, reflecting a double top pattern in the daily time frame chart. 

On April 12th, the bullish reversal from the $7.6 support mounted a new higher low, suggesting the traders’ sentiment flipped from selling the rallies to buying on dips. However, the reversal rally couldn’t surpass the previous swing high resistance of $10, undermining the uptrend possibility.

Furthermore, the CAKE price turned down from the $10 resistance and fell 21% within three days. As a result, the sellers pulled the altcoin to the $7.6-$7.15 support zone, which is the neckline mark of a double bottom pattern.

A daily-candlestick closing below the $7.15 mark would accelerate the selling pressure and dump the CAKE price 14.4% lower to $6.1 support.

Technical indicator

SMA: A bullish crossover among the 50-and-100-day SMA at the $7.6 mark provides additional support for a price reversal. However, if the sellers undermine this set-up and plunge below the $7.16 support, the traders can expect a freefall to the $6.1 mark.

MACD indicator: The fast and slow line offers a sell signal with a negative crossover in the bullish region. Moreover, these lines approaching the neutral zone suggest weakness in the bullish momentum.

  • Resistance levels- $.86, $10
  • Support levels- $7.6-7.1 and $6.1

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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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