The post CAKE Price Jumps 21% To Cross $3.50, Can Buyers Reclaim $5? appeared first on Coinpedia Fintech News
With the bullish trend continuation gaining momentum, the CAKE price crosses the $3.5 mark. This marks a bullish milestone for the PancakeSwap native token. However, the uptrend struggles to sustain momentum, leading to a quick fallback.
The strong trend comes after a reversal from the fake breakdown of a symmetrical triangle pattern. Hence, the overall trend in the PancakeSwap native token has an extremely bullish vice, fueling the optimistic CAKE price prediction.
Source – Tradingview
Breaking the sideways trend with a bounce back from $2.15, the CAKE price action finds sharp increases in the bullish momentum in small bursts. Making bullish engulfing candles on certain days with significant jumps fuels the uptrend in PancakeSwap.
With the recent jump of 21% overnight, the PancakeSwap rallies to $3.50 and even challenges the $3.79 mark before facing overhead resistance. Due to this, the intraday pullback takes a severe toll on CAKE price with a 5.88% drop and warns of a deeper retest.
Currently, the CAKE price trades at $3.50, forming a bearish piercing candle warning of a retest. Generally, after a long bullish engulfing candle, a retest is possible to the 50% mark of the candle. In this case, it comes to around $3.229 and shows a possibility of retesting it.
Technical Indicators:
MACD indicator: The MACD and signal lines continue to be bullish after the recent positive crossover event. This increases bullish histograms’ intensity and reflects a trend momentum rise.
DMI: The VI lines gain a significant gap after the crossover, with the ADX line rising to reflect the rise in momentum. Thus, the indicator shows a high momentum bullish spree in motion.
Will The CAKE Price Reach $5?
The CAKE price skyrocketed with unleashed breakout momentum and showed a short-term pullback with the intraday fall. The quick fall brings entry opportunities for sideline traders. Further, the trend-based Fibonacci levels highlight a strong trend, while a retest is possible to the 61.80% level at $3.16. Hence, the two close support levels are at $3.22 and $3.16.
On the bullish side, the uptrend can scale to $4.47 or $4.81 in the first week of 2024 if the bullish trend sustains.
