CAKE Technical Analysis: Rejection Near $10 Brings Sellers Back
Key technical points:
Past Performance of CAKE
The CAKE coin price action shows a bullish reversal from the $5 mark resulting in a reversal that creates a rounding bottom pattern. The bullish rally of 100% within three weeks surpasses the neckline at $8.5 and 100-day EMA and reached the $10 mark.
Source-Tradingview
CAKE Technical Analysis
CAKE coin price action failed to sustain near the $10 mark as sellers regained trend control resulting in a higher price rejection. Hence, a reversal is in order to retest the $8.5 mark.
The crucial daily EMAs (50, 100, and 200-days) display bearish alignment, but the bullish rally resulted in a reversal in the 50-day EMA. Hence, the EMAs project a high possibility of bullish crossovers.
RSI Indicator: The RSI slope exits the overbought zone as it falls under the 70% boundary. Moreover, the 14-day SMA fails to support the uptrend indicating a significant surge in selling pressure.
MACD Indicator: The MACD and signal lines get closer to each other testing an end to the uptrend with a bearish crossover. Moreover, the falling trend of the bullish histogram reflects the high possibility of a downtrend.
The CAKE technical analysis reflects a possible retest of the $8.5 mark as the sellers showcase increased activity.
Upcoming Trend
CAKE coin price experienced a remarkable increase in selling pressure near $10, projecting a high possibility of a downtrend reaching $8.50. Furthermore, the downfall could continue to the $7 mark if the selling continues.
Support Levels: $8.5 and $7
Resistance Levels: $10 and $12
