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Can CAKE [PancakeSwap] bulls bake a rally after seeing strong moves post…

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation

The day before today’s drama however, PancakeSwap’s token CAKE did have a bullish outlook in late March. The rejection on the $11 space left a bitter style within the mouths of long-term traders of CAKE.

On the time of writing, the token was within the midst of an honest bounce from a stage of help, following Bitcoin’s bounce from the $30k mark.

CAKE- 12 Hour Chart

PancakeSwap: CAKE sees a bounce after a sharp decline, but has strong resistance overhead

Supply: CAKE/USDT on TradingView

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Nearly precisely a 12 months in the past, in early Might 2021, CAKE was buying and selling at $42 and traders eyed the $50 stage with pleasure. The value couldn’t push previous $44.2, and the token slumped to $10. In late August, CAKE swapped palms at $29, however the bulls might drive the rally no larger, and a long-term downtrend was as soon as extra affirmed.

As soon as extra in mid-March, the bulls seized the initiative, and CAKE rallied from $5.44 to $10.9 in April. The $10.9-$11.2 is a vital zone of resistance, as soon as that the bears merely couldn’t contact.

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Previously six weeks, the $7.5-$8 space has been massively important as CAKE has seen sturdy strikes after flipping this space. As issues stand, this zone is an space of provide. Furthermore, the Fibonacci retracement ranges confirmed this space to have confluence with the 38.2% retracement stage at $7.51. Due to this fact, within the subsequent week or two, the $6.7-$7 space and the $7.5 zone are more likely to function bearish bastions.

Rationale

PancakeSwap: CAKE sees a bounce after a sharp decline, but has strong resistance overhead

Supply: CAKE/USDT on TradingView

The RSI descended beneath impartial 50 in April and dived as little as 22.2 yesterday. On the time of writing, CAKE appeared to bounce from the $5.58 help stage and will revisit $6.7 and $7.5. The Superior Oscillator was additionally beneath the zero line, to point out sturdy bearish momentum.

Then again, the OBV has made a powerful transfer larger in the course of the March rally, though it did pattern downward in April and Might. Due to this fact, whereas the sellers do have the higher hand, there may be the faint chance that this may change ought to bulls recapture $7.5.

Conclusion

The market construction flipped decisively bearish as the worth fell beneath $7.5, and the pattern dictates that one ought to search for promoting or shorting alternatives on the crypto asset. A transfer above $7.5-$8 might shift this bias, however a bull entice cannot be discounted as market sentiment remained fearful.

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