CAKE Technical Analysis: Triangle Breakout Rally Slowly Gains Speed
Table of contents
The CAKE price action displays a rising trend within a triangle breakout consisting of multiple lower rejection candles. The breakout rally exceeds the consolidation range with the overhead resistance at $4.5. So, should you consider buying PancakeSwap with this range breakout?
Key Points:
Source - TradingView
CAKE Technical Analysis
As mentioned in our previous analysis, the CAKE price action shows a bullish reversal from the 100-day EMA, giving a successful post-retest reversal. Moreover, the reversal rally breaks the consolidation range height at $4.5, giving another breakout entry opportunity.
The reversal rally accounts for a 12% growth last month, increasing the possibility of a bullish crossover between the 50 and 100-day EMA. Furthermore, the increasing number of lower price rejection candles driving the uptrend shows a high likelihood of an uptrend to the 200-day EMA.
The intraday trading volume shows few spikes in buying pressure supporting the bullish candles, increasing influence over the price chart. So, if the buying pressure sustains, the CAKE price action will continue the uptrend to the 200-day EMA if it exceeds the $5 mark.
Conversely, if the PancakeSwap market price tumbles below the $4.5 mark, the trend will dump to the 100-day EMA.
Technical Indicators
The RSI slope shows a diagonally rising trend above the halfway line, reflecting growth in buying pressure. Moreover, the MACD indicator shows the fast and slow lines gaining a bullish spread in the positive zone.
Therefore, the technical indicators reflect improving underlying sentiments and growing bullish support. As a result, the CAKE technical analysis takes a bullish viewpoint and suggests hopping on the breakout entry.
Resistance Levels - $5 and $5.4
Support Levels - $4.5 and $4.27