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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 trade PancakeSwap, CAKE, has had an excellent run up to now week or two as the worth appreciated by practically 60% as soon as the worth retested $6 as help. On the time of writing, the PancakeSwap token traded at $9.87, simply beneath the psychological $10 degree. There was some proof to counsel that the chance of CAKE climbing previous $10 and $11 was good within the weeks to come back.
CAKE- 1D
Supply: CAKE/USDT on TradingView
CAKE has damaged the February highs at $8.72. Furthermore, the worth 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 help ranges.
On the time of writing, CAKE was buying and selling simply above the $9.67 horizontal degree, which has had some significance up to now. For example, it served as help in March and June final 12 months.
Additional to the upside, the $10 mark represents a psychological degree of resistance for the worth, 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 every day chart, the RSI has been under the impartial 50 line since October, with temporary forays above. This was indicative of a gentle and robust downtrend. Nonetheless, up to now couple of weeks, the RSI has shot upward and stood at 75 on the time of writing. This prompt that the downtrend might need been damaged.
Together with the clues from the worth motion, it appeared doable that CAKE would push greater. The OBV additionally has been pushing greater in latest weeks and reveals that purchasing stress was behind the latest rally.
Conclusion
The indications confirmed a doable shift in momentum, alongside a robust demand behind the rally of CAKE from the $6 lows. The worth motion prompt {that a} transfer towards $11.1 might materialize within the subsequent few days. A flip of $11.1 to help might current one other shopping for alternative.
