High Momentum Breakout from $3.5 Foretells a 22% Jump

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Published 21 mins ago

On July 27th, the Pancake (CAKE) price rebounded from the support trendline with a minor star candle pattern. The resulting run-up amid improving market sentiment surged the market price 24% higher and breached the $3.55 and $3.85 resistances. Furthermore, the breached resistance may offer an entry offer to sidelined buyers.

Key points: 

  • The CAKE price gained for the third consecutive day and reached its current price of $4.04
  • The CAKE price regains the 20-and-50-day EMAs slopes, providing an extra edge for buyers.
  • The intraday trading volume in the CAKE token is $179.6 Million, indicating a 163.5% loss.

CAKE/USDT ChartSource- Tradingview

Following June’s first half downfall, the CAKE/USDT pair consolidation had shaped in an ascending triangle pattern. The new higher lows in price action highlighted the rising bullish momentum, indicating an upcoming recovery.

Thus, on July 27th, altcoin gave a bullish breakout from the neckline resistance of $3.55, triggering this bullish reversal pattern. Furthermore, today with a 163% volume pump, the CAKE price has Jumped 11% and breached the immediate resistance of $3.85.

Though a coin price shows an excellent follow-up candle, the buyers should wait for a candle closing above $3.85 to confirm this breakout. If they succeed, the breached resistance would be flipped to a viable launchpad to bolster further recovery. 

Under a suitable bullish case, the buyers would drive the post-retest rally 22.5% higher to $5.

However, even if the buyers failed to sustain the $3.85 retest, the coin chart shows an upcoming support trendline which may assist buyers in maintaining a sustained recovery.

Technical indicator

Bollinger band indicator: the CAKE price pierced the indicator’s upper band with today’s jump, indicating an aggressive buying in the market. Previously when the price tagged this resistance, the coin price has usually retrace, which supports our retest theory.

MACD: the enlarged gap between the fast and slow as they entered the bullish territory provides an additional confirmation $3.85 breakout. 

  • Resistance levels- $4.18, $5
  • Support levels- $3.85 and $3.5

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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