- CAKE price is presently hovering under the influence of two critical EMAs
- The press time price of CAKE/USDT is $13.24 established on the back of a 3.24% increase in the past 24 hours
- The overall price action of the CAKE Coin is restricted inside a massive descending triangle pattern on the daily chart
The emerging Death Cross between critical EMAs to crucify the current trend of the CAKE Coin
PancakeSwap price action has awakened the descending triangle pattern formation since May’s fatal drop. However, June contributed to the CAKE Coin losing the support of the 200 EMA, thus enabling bears to regain their supremacy. Only recently, the 20 and the 200 EMA have attempted to collide, thus making the token vulnerable to its May losses.
Presently, the CAKE Coin is maintaining its sluggish momentum near the resistance trend line. While a breakout might be ideal for the bulls, the price trend is struggling under the pressure of the impending Dead Cross. To get above the critical EMAS, the bulls have to aim for a 14% upswing, which will be followed by a break above the overhead resistance of $14.80.
Similarly, a rejection from the trend line will expose CAKE Coin to the immediate support levels of $11.37 and $9.78 respectively. The expected target for this bearish outlook will validate a 13.45% fallout from the current price. On the contrary, the daily Stochastic RSI is in favor of a reversal as evidenced by the bottoming of the %K line and the %D line.
CAKE Coin being tormented by the 20 EMA on the 4-hour chart
In addition to the price action trading under the influence of a Dead Cross on the daily chart, CAKE Price on the 4-hour is facing strong hindrance by the 20 EMA. The 20 EMA is caught between invalidating the efforts of the bulls and projecting Dead Cat bounces for the price action. As it appears that today’s bullish candlestick was just an attempt for the CAKE price to catch up with the 20 EMA.
A rejection from the current point will give rise to a minimum of 5% fallout. The bearish divergences displayed by the 4-hour RSI seem to agree with the above statement. On the contrary, the MACD has braced itself for a reversal as evidenced by the bullish crossover between the two lines.
The Supertrend indicator stands by the sell signal. This suggests the fact that the price action of CAKE Coin is unprepared for a bullish breakout from the falling wedge pattern. Traders can use this opportunity to short CAKE Token while aiming for targets of $12.42 and $11.78 respectively.
SUPPORT : $11.4, $9.8
RESISTANCE : $14.8
