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Sohrab Khawas
Sohrab Khawas
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Nov 21, 2023 11:42 UTC
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Will CAKE Price Regain $3 By November End?
The rising wedge price is guiding the current recovery in Cake Price
Until the chart pattern is active, the buyers may have a strong hold over this asset
A breakdown below the pattern’s support could trigger a significant downturn
Amid the current market uncertainty in the crypto market, the bullish momentum in CAKE Price has started to wane around the $2.83 mark. The overhead supply is highlighted by long-wick rejection candles, Indicating the sellers may attempt to trigger a minor correction before the recovery rally continues.
However, a look at the 4-hour time frame chart shows the overall recovery trend is still intact under the influence of a rising wedge pattern, indicating the Cake price prediction is bullish for the near term.
Chart Pattern Keep Recovery Intact
The PancakeSwap token entered an aggressive recovery mode in the third week of October as the price jumped from $1.05 to a recent high of $2.82, accounting for a total growth of 169%. This recovery aligned with a significant surge in volume and several pullbacks indicate sustainable bullish growth.
Furthermore, the 4-hour chart shows this recovery has started shaping into a rising wedge pattern While converging trend lines offer dynamic support and resistance. A recent reversal from the lower trendline of the wedge pattern has pushed the Cake token to the current trading price of $2.6.
If the bullish momentum persists within this structure, buyers may prolong this rally 20% higher to hit the $3.15 mark. Anyhow, a breakout above the overhead trendline would accelerate the buying momentum and push the cake token price to a potential target of $3.5 followed by $4.
Technical Indicators:
EMA: A golden crossover between the 50 and 200 days would boast buying pressure in this asset
ADX indicator: The daily ADX slope at 51% accentuates an exhausted recovery and higher potential for correction.
Will the CAKE Price Fall Back Below $2?
Until the rising wedge pattern is intact, the CAKE token price may prolong its upward trajectory. However, taking a pessimistic approach, a bearish breakdown below this lower boundary provides sellers with additional barriers to pressurize the coin recovery.
The post-breakdown fall would tumble the prices 30% down to retest the $1.8 support concluding with the 61.8% Fibonacci retracement level.
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