Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
The decentralized exchange PancakeSwap’s token, CAKE, has performed well over the past two weeks as its price surged nearly 60% as the price retested $6 as a support. At the time of writing, the PancakeSwap token was trading at $9.87, just below the psychological level of $10. Evidence showed that the chances of CAKE climbing above $10 and $11 in the coming weeks were good. .
CAKE broke the February highs at $8.72. Moreover, the price has also peaked at $9.53 for the month of March. Therefore, these two levels are likely to serve as support levels in the coming month.
At the time of writing, CAKE was trading just above the horizontal level of $9.67, which has held some interest in the past. For example, it served as support in March and June last year.
In addition to the upside, the $10 sign represents a psychological resistance level for the price, with $10.66 and $11.12 also being levels to watch out for.
In yellow, the Fibonacci retracement levels are plotted based on CAKE’s move south from $20.5 to $5.31 from November to mid-March. The retracement levels are also likely to act as resistance on the way up.
On the daily chart, the RSI has been below the neutral 50 line since October, with short trips above it. This was an indication of a steady and strong downtrend. However, in recent weeks, the RSI has skyrocketed and stood at 75 at the time of writing, suggesting that the downtrend may have been broken.
Along with the clues from the price action, it seemed possible that CAKE would push higher. The OBV has also been pushing higher in recent weeks, showing that buying pressure was behind the recent rally.
Indicators showed a potential shift in momentum, alongside strong demand behind CAKE’s rally from the $6 lows. The price action suggested that a move towards $11.1 could happen in the coming days. A $11.1 flip to support could present another buying opportunity.
This post CAKE can taste good after hitting $11.1 to support
was published first on https://ambcrypto.com/cake-could-taste-yummy-after-a-flip-of-11-1-to-support/