CAKE Price Signals Bullish Reversal At $2, Should You Buy?
The post CAKE Price Signals Bullish Reversal At $2, Should You Buy? appeared first on Coinpedia Fintech News
Concluding the bearish under the 50D EMA influence, the CAKE price sets a high-speed bull sprint after testing the psychological mark of $1. Breaking above the 50D EMA, the altcoin breaks multiple resistance levels and exceeds the 200D EMA.
Crossing the $2 mark, the PancakeSwap price reaches the $2.74 mark before taking a sharp pullback, accounting for a 160% jump before a setback. The downtrend approaches the psychological mark of $2 and accounts for a 22% drop in the last seven days.
Source – Tradingview
The CAKE price reflects a highly volatile trend above the $2 mark and struggles to sustain a unidirectional move. With multiple quick pullbacks and bouncebacks, the altcoin is slowly losing trend momentum. The retest of the $2 mark will mark a pivotal event for the upcoming price trend.
Moreover, with the ongoing correction, the buyers may soon need to prove their dominance at the psychological mark of $2. Currently, the CAKE price trades at $2.16 with an intraday fall of 1.55%, teasing a longer correction phase.
Considering the buyers manage to remain dominant, a double bottom reversal can refuel the bullish momentum in CAKE price trend. In an otherwise situation, a fatal fall awaits for the PancakeSwap price trend.
Technical Indicators:
RSI indicator: The RSI line continues declining following the bearish divergence in the daily chart. Therefore, the indicator reflects a bearish phase in motion.
Will The CAKE Price Bounce Back From $2?
If the bulls manage to absorb the overhead supply, then the CAKE price can sustain above the crucial level of $2. Further, this increases the overall bullish momentum, resulting in a stronger comeback from buyers.
Conversely, if the altcoin is unable to maintain the price above the critical support level of $2, the price will experience a sharp decline. This could result in the price falling to its lower support level of $1.60.
