Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
The token of the decentralized change PancakeSwap, CAKE, has had a very good run prior to now week or two as the worth appreciated by almost 60% as soon as the worth retested $6 as assist. On the time of writing, the PancakeSwap token traded at $9.87, simply beneath the psychological $10 stage. There was some proof to recommend 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 assist ranges.
On the time of writing, CAKE was buying and selling simply above the $9.67 horizontal stage, which has had some significance prior to now. As an example, it served as assist in March and June final 12 months.
Additional to the upside, the $10 mark represents a psychological stage 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 primarily based 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 best way up.
Rationale
Supply: CAKE/USDT on TradingView
On the each day chart, the RSI has been under the impartial 50 line since October, with transient forays above. This was indicative of a gradual and powerful downtrend. Nevertheless, prior to now couple of weeks, the RSI has shot upward and stood at 75 on the time of writing. This steered that the downtrend might need been damaged.
Together with the clues from the worth motion, it appeared potential that CAKE would push larger. The OBV additionally has been pushing larger in latest weeks and reveals that purchasing strain was behind the latest rally.
Conclusion
The indications confirmed a potential shift in momentum, alongside a robust demand behind the rally of CAKE from the $6 lows. The worth motion steered {that a} transfer towards $11.1 may materialize within the subsequent few days. A flip of $11.1 to assist may current one other shopping for alternative.
