cryptoknowmics.com
According to the technical analysis, the low volume retest phase in the CAKE token price hints at the resumption of prevailing recovery. Is it a hidden trap for buyers? Despite the ongoing sell-offs in the crypto market over the past few months, the CAKE token price has offered a steady recovery to its holders. Initiated from the $2.5 mark, The altcoin has shown a direction rally over the past four months and has registered around 82.6% gains.
Key Points:
- The PancakeSwap price action shows an increase in supply at $5, knocking down the breakout rally.
- The bearish crossover in the VI indicator warns of the support trendline fallout.
- The intraday trading volume in PancakeSwap is $30.72 million.
Source - TradingView
CAKE Technical Analysis
An ascending trendline has actively supported the CAKE token during the recovery course. However, the multiple reversals from this support indicate the traders are aggressive buyers at pullbacks. The CAKE price currently trades at $4.57 and is trying to sustain above the breached resistance since October. However, the ongoing retest phase has tumbled the price by 10%, down from the $5 swing high. This retracement currently retests the combined support of ascending trendline and the $4.5 mark, offering a pullback opportunity for sidelined traders. Moreover, the rise in the declining trend in trading volume during the retest phase provides a buying opportunity. If the buying pressure persists, the altcoin should rise 9% higher to rechallenge the $x barrier. In a more favorable scenario, a bullish breakout from the $5 mark will prolong the prevailing uptrend to the 200-day EMA at $5.37.
Technical Indicators
Despite the ongoing correction, the daily-RSI slope sustained above the midline indicates the market participants feel optimistic about the CAKE token. However, the bearish merger in the VI lines warns of the possibility of the support trendline fallout if the selling pressure grows. Therefore, the CAKE technical analysis keeps a neutral standing for the upcoming trend. Resistance Levels - $5 and $5.37 Support Levels - $4.5 and $4.27