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.
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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.
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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.
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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
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