CAKE makes double bottom and breakout
PancakeSwap (CAKE) hit a double bottom within the USD 9.80 support area.
It then broke above a descending resistance line and has been moving up ever since.
Double bottom leads to breakout
CAKE has been down since April 30th when it hit an all-time high of $ 44.27. The token fell until it fell on Jan.
After a bullish session, the token fell back into the $ 9.44 region on June 22nd, creating a double bottom with both lows having long wicks below.
Also, this pattern is combined with significant bullish divergence from the RSI, MACD, and Stochastic oscillators. The latter created a bullish cross as the RSI moved above 50.
Upon close, CAKE broke above a descending resistance line and has been rising since then.
The closest resistances are at $ 22.8 and $ 26.8, the 0.382 and 0.5 fib retracement resistors.
CAKE / USDT daily chart | Source: TradingView
Short-term movement động
In the short term, it looks like CAKE is trading on an ascending parallel channel. Such models often contain corrective movements.
As such, the pattern could breakdown before CAKE resumes its upward trajectory towards the goals outlined above.
In this case, the key areas of support are at $ 12.2 and $ 12.98, the fib retracement support levels at 0.5 and 0.618.
CAKE / USDT 2-hour chart | Source: TradingView
CAKE / BTC
Trader @CryptoNTez outlined the CAKE / BTC chart showing a breakout above a descending resistance line.
The resistance line has been in place since April 30th and the pair broke above it on July 2nd.
The technical indicators are rising and support the continuation of the uptrend. The RSI is above 50, the stochastic oscillator has created a bullish cross and the MACD is about to break into positive territory.
The next resistance levels are between 56,160 satoshi to 62,333 satoshi, 0.5-0.618 fib retracement resistance levels.
CAKE / BTC daily chart | Source: TradingView
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