warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
The recent bounce from the 2-month trendline support (white, dashed) prompted a bullish crossover at PancakeSwaps. [CAKE] 20/50 EMA per day.
The resulting growth has put Alt on the brink of a short-term exponential moving average. However, the $4.4-$4.2 range may continue to pose obstacles to recovery in the coming sessions.
A potential bounce off trendline support could help buyers push for short-term gains before encountering bottlenecks in the immediate resistance range. At the time of writing, CAKE is trading at $3,912, up 1.24% in the past 24 hours.
CAKE daily chart
Source: TradingView, CAKE / USDT
CAKE witnessed a rising wedge (white) that paved the way for its bullish recovery. But the $4.2-$4.4 range turned against resistance by reviving short-term selling pressures.
Despite the decorative breakdown, the 20 EMA (red) managed to swing above the 50 EMA (cyan) while the coin found its floor near trendline resistance.
These moves caused a slow-moving phase to occur near the EMA. A convincing bounce from trendline support could put the bulls in the driving seat for a choppy breakout.
Current bounce from trendline support may find one Reflection, reversal, inversion From $4.2 – $4.4. A bounce from this range will set the currency to retest trend line support.
Either way, a drop during trend line support Will confirm my bullish revocation and suggest a sell signal.
Logic
Source: TradingView, CAKE / USDT
The Relative Strength Index (RSI) has crept just above the center line mark to show the ease of selling pressure. A continuation of the position above the 50 level may confirm the upward trend.
Chaikin Money Flow (CMF) also showed a slight ease in selling power. However, traders should look for a potential close above balance to confirm the bullish bias.
The DMI lines have shown a somewhat neutral stance. But the ADX indicator showed a noticeably weak trend direction for CAKE.
conclusion
The current recovery from trend line support may find resistance in the $4 region. With mixed indicators blinking, buyers should look for a sustained close above the 20/50 EMA to confirm the bullish nature.
The Possible goals It will remain as discussed. Finally, monitoring the movement of the King’s coin can help you make a profitable bet.