Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
The token of the decentralized change PancakeSwap, CAKE, has had run up to now week or two as the value appreciated by practically 60% as soon as the value retested $6 as assist. On the time of writing, the PancakeSwap token traded at $9.87, simply beneath the psychological $10 stage. There was some proof to counsel that the likelihood of CAKE climbing previous $10 and $11 was good within the weeks to return.
CAKE- 1D
Supply: CAKE/USDT on TradingView
CAKE has damaged the February highs at $8.72. Furthermore, the value has additionally established highs for the month of March at $9.53. Due to this fact, within the subsequent month, these two ranges are more likely to function assist ranges.
On the time of writing, CAKE was buying and selling simply above the $9.67 horizontal stage, which has had some significance up to now. As an example, it served as assist in March and June final 12 months.
Additional to the upside, the $10 mark represents a psychological stage of resistance for the value, with $10.66 and $11.12 additionally being ranges to be careful for.
In yellow are plotted the Fibonacci retracement ranges based mostly on CAKE’s transfer south from $20.5 to $5.31 from November to mid-March. The retracement ranges are additionally more likely to act as resistance on the way in which up.
Rationale
Supply: CAKE/USDT on TradingView
On the each day chart, the RSI has been beneath the impartial 50 line since October, with transient forays above. This was indicative of a gradual and powerful downtrend. Nevertheless, up to now couple of weeks, the RSI has shot upward and stood at 75 on the time of writing. This steered that the downtrend might need been damaged.
Together with the clues from the value motion, it appeared doable that CAKE would push greater. The OBV additionally has been pushing greater in current weeks and reveals that purchasing stress was behind the current rally.
Conclusion
The symptoms confirmed a doable shift in momentum, alongside a robust demand behind the rally of CAKE from the $6 lows. The value motion steered {that a} transfer towards $11.1 may materialize within the subsequent few days. A flip of $11.1 to assist may current one other shopping for alternative.
