CAKE Technical Analysis: Uptrend Within Triangle Prepares Bullish Exit
Table of contents
PancakeSwap (CAKE) shows a bullish reversal from the $3.5 mark sustaining above the support trendline and crossing the $4 mark. Moreover, the increased buying pressure increases the bullish trend momentum, creating a high possibility of a bullish breakout. Furthermore, the prices approach the 100-day SAM after cracking the 50-day SMA. So, will the sellers at $4.27 fail to contain the growing demand?
Key Points:
Source - TradingView
CAKE Technical Analysis
The CAKE price shows a bullish reversal within the symmetrical triangle pattern with an increased buying pressure at the support trendline. The reversal rally crosses above the $4 mark and projects an uptrend possibility to the resistance trendline.
Currently, the price action displays a Doji candle forming after the 2.50% bullish engulfing candle struggling for a follow-through candle. Moreover, the trading volume supporting the Doji candle warns of an evening star pattern. Nonetheless, if the CAKE prices maintain an uptrend to reach the resistance trendline, the possibility of a bullish breakout will increase. Moreover, the traders can expect the breakout rally to reach the next milestone at $5.
On a negative note, a bullish failure will result in a bearish turnaround within the triangle and might test the support trendline at $3.90.
Technical Indicators
The bullish crossover between the fast and slow lines gains spread with the growth in the bullish histograms. Furthermore, the daily-RSI slope maintains a diagonal uptrend within the nearly oversold overbought zone after crossing above the 14-day average line. Hence, the technical indicators keep an optimistic view of the upcoming CAKE price trend.
Resistance levels - $4.27 and $5
Support levels - $3.90 and $3.80