https://ift.tt/6wdO5GZ Price Nearing $10 Breakout; Time to Buy?

The recent correction phase in the crypto market tumbled the CAKE price by 31.4%, bringing it to the 0.618 Fibonacci retracement level($7.5). The buyers reverted the coin price from this support suggesting the traders’ sentiment has flipped from selling the rallies to buying on dips. The altcoin is gradually nearing the $10 resistance for another breakout.

Key points: 

• The CAKE chart shows the morning star candle in the weekly time frame chart
• The 200-day EMA aligned with $11 mounts a strong resistance
• The intraday trading volume in the CAKE token is $172.8 Million, indicating a 3.82% loss.

Source- Tradingview

On March 17th, the Pancake(CAKE) price gave a massive breakout from a four-month-old falling wedge pattern. The sustained bullish momentum drove a parabolic rally to the record high of $11.

However, the recent sell-off in the crypto market plunged the CAKE price to 0.618 FIB($7.5), registering a 30% devaluation. Furthermore, the discounted price attracted many buyers and rebounded the price with an inside candle.

The post-correction rally drove the CAKE price above the shared resistance of $9 and 100-day EMA, intensifying the buying momentum. If buyers sustain this breakout, the altcoin will pump 7% higher to $10.

A daily-candlestick closing above this swing high resistance($10) would indicate the resumption of the bullish rally.

Alternatively, a reversal from the $10 resistance would question the reliability of wedge breakout and may sink the coin price back to $7.45.

Technical analysis

EMA: The declining 200-day EMA indicates an overall bear trend, whereas the flattish 20, 50, and 100-day EMA reflects a short-term range rally. However, a recent recovery regained these flat EMAs, providing an extra edge to longer traders.

Vortex indicator: the VI+ and VI- indicator reflects a bullish crossover, offering additional confirmation. Moreover, the immediate spread between this line highlights strong buying in the market.

• Resistance levels- $10, $11
• Support levels- $8.45 and $7.5