CAKE Technical Analysis: Breakout Rally Exceeds The $4.27 Mark

The rising wedge breakout rally shows an uptrend continuation in CAKE prices breaking the 100-day SMA. Will the uptrend break the $5 mark? Key technical points: 

• The PancakeSwap(CAKE) price has increased by 20% in the last five days to break above the $4.27 mark.
• The post-retest reversal with long-wick candles approaches the overhead resistance at $5.
• With a market cap of $633 Million, the intraday trading volume of PancakeSwap has increased by 39% to reach $91.54 Million.

Past Performance of CAKE

As mentioned in our previous article, the CAKE prices approach the overhead resistance at $4.27, accounting for a price jump of 12%. Moreover, this week’s spike in trading volume this week results in a breakout rally exceeding the $4.27 mark. The breakout rally over the last five days shows a jump of 20% and approaches the overhead resistance at $5.

Source- Tradingview

CAKE Technical Analysis 

Earlier this week, the CAKE price witnessed a rise in buying pressure undermining the sellers at $4.27. However, the breakout rally shows a higher price rejection in the daily candle teasing a retracement to retest $4.27. The fall of bearish opposition by the 100-day SMA remains a crucial buying signal as it unleashes the trapped bullish momentum. The RSI slope displays a gradual rising trend in the overbought zone with the support of the 14-day SMA line. Hence the technical indicator maintains a bullish outlook for the upcoming price trend. The DMI indicator displays a positive trend in the DI lines with a substantial bullish gap. Moreover, the ADX line rises significantly, reflecting growth in trend momentum. In a nutshell, the CAKE technical analysis displays a high likelihood of the $5 breakout.

Upcoming Trend 

The increasing buying pressure projects a high likelihood of an uptrend in the CAKE prices breaking above the $5 mark. After that, traders can expect the bullish breakout rally to reach $6.12. However, a bearish reversal will retest the $4.27 support level Resistance Levels: $5 and $6.12 Support Levels: $4.27 and $3.80

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