Reversal Within Pattern Hints At Short-Term Recovery In CAKE Price

Brian Bollinger
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PanCakeSwap Team Burns $34 Mln Tokens, CAKE Price Soars 25%

The recent correction phase in the crypto market assisted sellers in completing the bear cycle within a broadening channel pattern. As a result, the CAKE price plugged back to the bottom trendline to replenish the bullish momentum. If the buying pressure surpasses the negative market sentiment, the CAKE price could recover to $5.

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Key points CAKE analysis: 

  • A CAKE price has risen 5.5% in the past two days
  • The breached 20-and-50-day EMA may act as a viable resistance
  • The intraday trading volume in the CAKE token is $60.7 Million, indicating a 50% gain.

CAKE/USDT ChartSource- Tradingview

Amidst the ongoing correction, a number of cryptocurrencies took a significant hit and are closing to their 2022 bottom support. However, the CAKE price maintains a broadening wedge pattern holding a reversal opportunity in the short term. The last reversal from the pattern’s resistance trendline on August 11th triggered aggressive selling from the traders.

As a result, the CAKE price plunged 25% and retested the combined support of the ascending trendline and $3.55. Today, the altcoin is 1.09% up and attempts another reversal from this dynamic support.

However, the volume activity is quite low to confirm if the buyers are committed to this reversal. But if they do, the CAKE price may witness another bull cycle within this pattern which may push the prices to the $5 mark.

However, the nature of this bearish continuation pattern is to accelerate the selling pressure once the price breaks the support trendline. Therefore, until the price doesn’t break above the resistance, to invalidate this bearish thesis, the CAKE price is threatened with a significant correction. 

Thus, if the sellers breach the bottom trendline, the coin price will sink by 30% and revisit its bottom 2022 bottom support of $2.61.

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Technical indicator

EMAs: the flattish 50-and-100-day EMA accentuates a sideways rally in the short term. However, these slope trading above the CAKE price may stall the expected bullish reversal.2

Relative Strength Index: a significant drop in daily-RSI slope shows the overextend buying during the prior recovery rally has stabilized, and further recovery can work at ease. However, indicator slopes below 50% indicate negative sentiment among traders.

  • Resistance levels- $4.2, $4.56
  • Support levels- $3.54and $3.23
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

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.

About Author
About Author
From the past 5 years I am 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. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.