NewsletterCAKE Price Analysis: Falling RSI Could Trigger Double Top Pattern Fallout
The Pancake(CAKE) price resonates within $10 and $7.5 barriers for over a month now, creating a narrow range. However, the consolidation reflected a bearish set-up with double top pattern formation. Under the bearish RSI influence, the CAKE holders may lose the $7.5 mark.
Key points:
- The CAKE reflects a 21.5% loss since last week
- The daily RSI divergence bolsters the double bottom fallout.
- The intraday trading volume in the CAKE token is $209.8 Million, indicating a 42% loss.
Source- Tradingview
On April 12th, the Pancake(Cake) price bounced from the $7.5 support, providing a higher low formation of an upcoming recovery.
However, the cake price failed to surpass the $10 resistance, undermined the possibility of a bull run, and reverted the coin price by 23%. The CAKE price revisited the $7.5 support, reflecting a double bottom pattern in the daily time frame chart.
On April 28th, the cake buyers tried to rebound the price with a morning star candle pattern; However, with no follow-through observed, the possibility of a fallout remains on the cards.
Respecting this bearish pattern, the coin price may drop below the $7.5 support and extend the ongoing correction. A daily-candle closing below this support would pull the altcoin back to march bottom support of $5.4.
In contrast, if buyers defend the $7.5 support, the CAKE price would continue to resonate in a minor range.
Technical indicator
The declining EMAs(20, 50, 100, and 200) have started a lateral movement accentuating a range rally. However, the recent correction rally nosedived below these EMAs support puts sellers at an unfair advantage.
Despite a lateral consolidation in price action, the RSI slope falling lower reflects the loss of bullish momentum. This bearish divergence gives additional confirmation for the double top pattern fallout
- Resistance levels- $10, $13.1
- Support levels- $7.6-7.1 and $5.4
- BONK Gets Major Boost as BitCapital Prepares to Launch Its First ETP on Swiss Exchange
- Bitcoin Price Will Rally to $200K After Crashing to $58K, Peter Brandt Predicts
- Michael Saylor’s Strategy Faces Removal From Nasdaq 100 Amid Crypto Market Crash
- Crypto Market Crash: $1B in Bitcoin, ETH, SOL & Top Altcoins Liquidated Ahead of Options Expiry
- Bitwise XRP ETF Sees Massive First Day of Launch With Nearly $22M in Trading Activity
- Dogecoin Price Forecast: Will DOGE Hold Above $0.15 or Fall Lower?
- Pi Coin Price Eyes a 105% Surge as Bullish Patterns Align With Bullish Fundamentals
- Will XRP Price Rally to $3 After Bitwise Launches First XRP ETF on NYSE?
- Ethereum Price Hits Historical Liquidity Reset — Is a Bounce Coming?
- Solana Price Prediction: Key Indicators That Could Propel SOL Toward $200
- Zcash Price Outlook: What’s Next for ZEC After Surging 12%?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
