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Vikram
Apr 26, 2022
by Vikram

CAKE Technical Analysis: Failed Bullish Attempt Starts Bearish Drive

CAKE
Reversal from the $10 mark puts the CAKE coin price back on the bearish tracks, aiming to break below the 50-day EMA. Will the downfall reach $7?

Key technical points:

  • CAKE prices rose above the $10 mark.

  • The CAKE prices cling on to the 50-day EMA.  

  • The 24-hour trading volume of CAKE is $95.24 Million, marking a 20% hike. 

    • Past Performance of CAKE

    Responding to the recent correction phase in the crypto market, the CAKE price reverted from the $10 resistance and tumbled 24.45%. However, the shared support of 0.618 Fibonacci retracement level and $7.51 mounted strong support and resumed the recovery rally. The buyers pushed the altcoin 28% higher than the previous swing resistance($10); however, the sellers are aggressively defending this level.

    TradingView Chart

    CAKE Technical Analysis 

    Last week, the CAKE chart presented multiple higher price rejection candles at $10, suggesting the traders face intense, supple pressure from above. As a result, the altcoin was turned down again and has breached the immediate support of $8.7 and 100-day EMA.

    The recent reversal has plunged the CAKE price below the 100-day EMA support and aims Ito knock out the 50-day EMA. Moreover, descending 200-day EMA reflects an overall bearish trend.

    MACD Indicator: The fast and slow lines sabotage the bullish crossover as the reversal rally puts bears back in control. Hence, the bearish crossover reinstates a downfall and negative trend continuation of the MACD histograms. 

    RSI Indicator:  The RSI slope breaks below the halfway mark and the 14-day average as it enters the nearly oversold zone. Hence, the indicator reflects a solid bearish trend with increased selling pressure.

    In a nutshell, the CAKE technical analysis forecasts a downtrend continuation to the $7.5 mark. 

    Upcoming Trend 

    The sustained selling pressure may pull the CAKE price to a  $7.5 neckline of the double bottom pattern. A follow-up breakdown will intensify the bearish trend to $6.8 support if the selling pressure sustains. 

    Resistance Levels: $8.5 and $9.15

    Support Levels: $8 and $7

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    CAKE Technical Analysis: Failed Bullish Attempt Starts Bearish Drive
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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