BNB and CAKE break out after double bottom – will BEL follow?
Binance Coin (BNB) created a double bottom within the USD 245 support area.
PancakeSwap (CAKE) also created a double bottom and then broke the descending resistance line.
Bella Protocol (BEL) faces $ 1.30 horizontal resistance and a descending resistance line.
On May 23, the BNB hit a low of $ 211, and shortly thereafter rallied to confirm the $ 245 area as support.
The token returned to the $ 245 region on June 22, in what looks like a double floor. This pattern is combined with a bullish divergence on the RSI, MACD and Stochastic oscillators.
If an upward move occurs, the next resistance is at $ 395 and $ 452, respectively.
BNB / USDT daily chart | Source: TradingView
The shorter-term six-hour chart shows that the price is breaking above a descending resistance line and then confirming it as support.
This supports the possibility of a raised floor and the BNB will continue to increase in the short term.
The direction of the long-term trend is unclear.
BNB / USDT 6-hour chart | Source: TradingView
- BNB created a raised floor.
- There is support at $ 245.
Similar to BNB, CAKE has also created a false bottom starting from the horizontal support area of $ 9.50. The lows were hit on May 23 and June 22, and both left long wicks below.
They are combined with significant bullish divergences in the RSI, MACD and Stochastic oscillators.
The next resistances are at $ 22.8 and $ 26.8, respectively.
CAKE / USDT daily chart | Source: TradingView
The 2-hour chart shows that the token broke a descending resistance line that had existed since June, which the price then confirmed as support and is currently moving upwards.
Hence, this supports the possibility of a raised floor being confirmed.
CAKE / USDT 2-hour chart | Source: TradingView
- CAKE created a double bottom.
- It broke out above a descending line of resistance.
BEL has fallen since hitting an all-time high of $ 5.84 on April 7th. The downtrend continued until the price hit a low of $ 0.86 on June 22nd.
Similar to BNB and CAKE, the low is associated with a bullish divergence between RSI and MACD.
However, the token is encountering resistance from around the USD 1.25 area and is still trading below the descending resistance line.
Until both the zone and this line are restored the trend cannot be considered bullish.
BEL / USDT daily chart | Source: TradingView
- BEL faces resistance at $ 1.25.
- It is moving along a descending line of resistance.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto