Disclaimer: The results of the following analysis are the author’s opinions alone and should not be considered investment advice.
- CAKE range of high tops and bottoms in the area of high liquidity.
- Crypto funding rates revealed an increase to the downside over the past day.
Pie [CAKE] Trendline resistance (white, dashed) indicates strong growth that has included a wave of higher highs and lows over the past four months.
The recovery from the multi-month support in the $2.6 region has pushed alternative growth towards the highly liquid area of the POC (Point of Control, marked in red).
Here is the AMBCrypto price forecast for Pie [CAKE] For the year 2023-2024
A possible rebound from the $4.3 support level is likely to extend the slow-moving gradual growth phase in the coming days. Any decline below this support may fuel the bearish fire. At the time of writing, CAKE is trading at $4,726.
Can buyers continue to rush past the confluence of resistance?
Source: TradingView, CAKE / USDT
The disguised mid-June recovery from the $2.6 baseline has formed a solid basis for a strong upward move in recent months. However, the range between $4.3 and 4.9 appears to have posed obstacles to recovery while providing high liquidity, as evidenced by the visual range profile.
Despite the rejection of selling from the immediate resistance barrier, CAKE price oscillated above the 20 EMA (red) and 50 EMA (cyan) to reveal the short-term bullish trend for the buyers.
The recent price action represents a stress phase on the daily chart. A convincing recovery from the exponential moving averages in the near term could help the bulls to challenge the confluence of resistance in the $5 region (shown on the chart).
If buyers fail to defend the significant $4.3-$4.5 range, CAKE could record a dip towards the $3.7-$3.5 range in the coming sessions. On the other hand, a close above the 200 EMA (green) will show strong bearish nullification by triggering a buy signal.
The Relative Strength Index (RSI) turned bullish while it immediately found support at its equilibrium. Any dip below 50 could confirm a slight change in momentum against the sellers.
CAKE funding levels have deteriorated
Source: Coinglass
Investor sentiment in the token futures market only worsened over the past week despite price action at the bottoms. At the time of writing, CAKE funding prices on all exchanges are either zero or negative.
Therefore, buyers should track a possible reversal of this trend to assess the chances of a buyback. Potential targets will remain as discussed. Finally, monitoring the movement of the King’s coin can help you make a profitable bet.