- The CAKE token shows a 20 and 200-day EMA bearish crossover in the daily timeframe
- The CAKE/BTC pair was trading at 0.000378 BTC with a loss of 4.3%
- The current price of the CAKE token stands at $11.2, with an intraday loss of 6.56%
The CAKE token price resonates in a descending triangle in the daily time frame. The price is currently at the key support level of the triangle pattern, .i.e., $11.2. Moreover, the chart shows a strong demand zone below this support, as the price bounced precisely from this level after the bloodbath in May and June. Therefore, CAKE traders can grab an excellent short opportunity, if the price manages to give a strong breakdown from this support and shows sustainability below it.
About the EMA’s, the CAKE token is currently trading below all the crucial EMA lines 20, 50, 100, and 200 represent a strong bearish trend formation. In addition, the CAKE token also shows a bearish crossover of the 20 and 200 EMA, encouraging the ongoing bear attack.
The RSI (BEARISH) value is at 32, indicating a bearish sentiment in the CAKE token.
The CAKE Token Shows A Steeper Descending Trendline In The 4hr Time Frame
After getting rejected from the overhead resistance trendline, the CAKE Token plunged back to the bottom support level forming a steeper descending trendline along the way. However, suppose the price goes for another bounce from this support level; in that case, the traders can use a breakout from this steeper trendline to grab a short and quick long opportunity till the resistance trendline of the descending triangle pattern.
The MACD indicators (BEARISH) show both the MACD and the signal line moving below the neutral zone, indicating bearish momentum in the token. In addition, the lines also gave a bearish crossover, projecting a sell signal for CAKE traders.
Conclusion: From the technical perspective, the overall trend for CAKE token is strongly bearish, and as mentioned above, the price is forming a descending triangle pattern, providing an excellent short opportunity for CAKE traders. However, the $11.2 support is quite formidable, and it will require intense selling pressure to be defeated. Hence, traders must wait for a decisive breakout from this pattern before entering the market.