CAKE Technical Analysis
When analyzed closely, the CAKE chart displays a long-term ascending triangle formation and the price has reached the upper border of this formation. The level at $2.84 stands as both horizontal resistance and the peak point of this formation. Though the price has been rejected from here many times, it is positive for the upward momentum to test this level again.
The first target will be the level at $3.42 if we see a clear breakout from this area, which has historically worked as a strong sell zone in the past and from which the price bounced. Given the formation's target, a breakout of this area could also push the price higher.
The key support level is the range between $2.20–$2.25, which coincides with the ascending trendline. We should expect a gradual pullback to the levels of $1.95 and $1.80 if the price drops below the $2.20–$2.25 range. The price previously bounced from the level at $1.54 many times, and below this is the major support level shown by the blue channel.
Analyzing CAKE coin’s price action, we can see that buyers are patiently and consistently defending support while sellers are putting pressure on the upper resistance. The direction of the imminent breakout will be a key signal that will determine market sentiment.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
