CAKE Technical Analysis: Will Bulls Outgrow the Falling Channel?

Key technical points:

Past Performance of CAKE

The CAKE coin price shows a price fall from $12.5 to almost $5 mark in 2022; however, the recent surge in buying pressure pushes the price closer to the $7 mark. However, the bullish wave fails to surpass the resistance trendline of the falling channel pattern. Hence, a retracement within the channel seems plausible, which may test the $5 mark.

Source-Tradingview

CAKE Technical Analysis 

CAKE coin price action indicates the possibility of a bearish retracement in the falling channel pattern as the selling activity grows near the resistance trendline. However, the breakout possibility remains strong.

The crucial EMAs (50, 100, and 200) showcase a bearish alignment with the 50-day EMA providing dynamic resistance. However, the 50-day EMA will result in a price surge to the next crucial EMA, i.e., the 200-day.

RSI Indicator: The RSI slope spikes above 50% and sustains in the nearly overbought zone. Furthermore, the 14-day SMA shows a parabolic recovery and aims to cross the halfway mark. 

MACD Indicator: The MACD and signal lines diverge to regain the bullish spread and head higher to the zero line mark. Moreover, the increasing trend of bullish histograms projects a boom in buying pressure.

In a nutshell, the CAKE technical analysis increases the bullish bias despite the solid possibility of a reversal within the channel. 

Upcoming Trend 

CAKE coin price will reach the 100-day EMA at $9 if the bulls outgrow the falling channel pattern. However, a jump in trading volume is a must for bullish commitment. Otherwise, a fakeout is possible. 

Conversely, the reversal will nullify the breakout approach and result in a price fall to the $5 mark.

Support Levels: $6.15 and $5

Resistance Levels: $7.75 and $8.65