- CAKE’s price is below the support mark and has lost strength.
- Buyers are looking hopeless now as bearish marubozu candles formed on the chart.
CAKE token delivered a negative outlook in the recent trading sessions, as aggressive selling was seen in the token. Moreover, harsh selling made the price break to a yearly low of $2.470, and heavy slippage was noted in the token price. Recently, token fell by more than 40% in the last ten trading sessions.
Buyers were now cautious and trapped based on the price action, which delivers heavy short buildup by sellers. CAKE broke multiple support marks and did not take a pause near any support showing there is heavy momentum gained by sellers. However, bounce can be seen in token price without retracement there might be any trap for buyers.
When writing, the CAKE token is trading at $1.8384 with an intraday gain of 2.00%. Moreover, the intraday trading volume of 7.87% showed investors’ interest in the last session.
Daily Chart Shows Strong Selling Pressure in CAKE
On the daily chart, the CAKE token is in a strong downtrend, forming only lower lows and breaking every immediate support mark rather than taking a pause. Moreover, the bearish marubozu candlesticks are shown on the chart, which shows three consecutive days of selling in tokens. Furthermore, there is an engulfing candle and inverted hammer also, which also signals the same bearishness.
However, CAKE noted a rejection from its 20-day EMA multiple times, but struggling to attain, but cannot hold. Recently, CAKE broke its demand zone of $2.000 where a strong breakdown took place, the token could not meet the strength and lost the gains. CAKE token is trading below the significant moving averages and showing negative cues.
What went wrong with CAKE?
On the 4-hour chart, CAKE was in a consolidation phase for a couple of weeks, and when it broke down the mark of $3.30, then aggressive selling was seen, and the token continued to tank.
Moreover, the other reason for the plunge in the token was a negative divergence in the RSI curve, which formed while the token was stuck inside the cage. As soon as the price leaves the cage, a bearish pattern activates, and sellers show their strong muscles in front of bulls.
The MACD curve is now showing bullish, as a bounce was noted in the last session, which shows green bars on the MACD histogram.
Conclusion:
CAKE token is at make or break level now, as if the price starts to bounce, then a short covering move will lead the price to retest the immediate swing of $2.00. On the other side, if it continue to slip, then trajectory lows of $1.50 can be tested.
Technical Levels:
Support Levels: $1.40 and $1.60
Resistance Level: $2.00 and $2.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.