In this new Wednesday crypto nugget, place CAKE on the decentralized exchange platform Pancake Swap. While all eyes were on it in the early months of 2021, it appears that the trend has shifted in favor of the sellers, bringing CAKE into a strong downtrend. Today we will identify key levels to see on the asset and the bias to have in the current market situation. After registering an upswing in recent weeks, this is it the start of a real trend reversal? That is what we will see without further delay in this new technical analysis.
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Cake below a large level, buyers must come forward
After the strong downtrend, the CAKE price have in recent weeks built one technical support for $1.12which allowed it to make a fairly significant upward rebound outweighs all the fall whom he has known since last April. Currently, CAKE exists under one confluence of resistance which consists of a previous support zone of $2.8/$3 as well as an oblique resistance on which the price has been rejected several times.
This large zone, which has prevented the upward progression of CAKE for more than three weeks, must therefore broken as soon as possible to maintain the current momentum. For now it is active is lateralized under oblique resistance, but this cannot last forever. Currently the bias is bearish on the CAKE, if it does not resume an upward momentum very soon, it will take the direction off $1.60 for the start of 2024.
However, as always, it is important to be prepared for all scenarios, whether bullish or bearish. Therefore, in the second part of the analysis, we will focus exclusively on breakout of the resistance zone to determine the levels to watch in the event of a bullish rebound.
Is a reintegration of the range approaching?
In the event of a bullish break of the resistance zone, as we mentioned in the previous part, CAKE will be brought to re-enter an area where the course developed over several months. With a high terminal at $5.09, this makes it a very interesting technical goal to keep in mind. But before getting there, it will require CAKE to overcome a large number of resistances which is represented on the graph.
Thus, in order to reach $5.09, in addition to the reintegration of the range, the asset must be able to regain the technical focal point which stands at $3.79. For buyers, this will not be a cakewalk as it will also require overcoming the following levels:
To conclude on the CAKE situation, it must be remembered that bias is currently bearish on a weekly scale and that it will strengthen in case of passing below 2 dollars. Currently, the asset marks something of a break, as if he was waiting for a certain event. If bitcoin stabilizes above $40,000 and ethereum takes the opportunity to continue its rise, the context could be favorable for the PancakeSwap token. The next few weeks will be to follow closely since they will provide more information about the direction the course will take and whether it will be opportunity to re-enter its previous weekly range.
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