CAKE Technical Analysis: Will Cakeswap Prices Exceed The $5 Mark?
Table of contents
Key technical points:
Past Performance of CAKE
On the 27th of July, the CAKE price retreated from the support trendline with the formation of a hanging man candle. The resultant run-up accompanied by improved market sentiment pushed 27% higher and surpassed resistance levels of $3.55 and the $4 mark. Additionally, the breached $3.55 mark represents neckline resistance of the ascending triangle pattern, indicating the possibility of a retest.
Source- Tradingview
CAKE Technical Analysis
If the CAKE prices show an outstanding follow-up candle, buyers need to offer a candle that closes above $3.85 to confirm the breakout. If the retest is successful, then resistance will be turned into a feasible bullish launchpad to boost further recovery.
The bearish influence decreases sharply as the market value exceeds the 50-day SMA and approaches the 100-day SMA at $4.5. The remarkable bull run reflects a boom in underlying bullishness evidenced by the reversal in the daily RSI slope breaking the overbought boundary at 70%. Furthermore, the MACD indicator showcases the fast and slow lines avoiding another crossover attempt as the buying pressure increases.
In a nutshell, the CAKE Technical Analysis shows that technical indicators and price action analysis go hand-in-hand. Hence traders can find a bullish entry opportunity once the daily candle closes above the $4 mark.
Upcoming Trend
In a bullish scenario, the buyers could propel the post retest 22.5 percent higher, up to $5. Even if buyers did not sustain the retest at $3.85, The technical chart indicates a possible support trendline that could aid buyers in maintaining ongoing growth.
Resistance Levels: $4.5 and $5
Support Levels: $3.80 and $3.55