PancakeSwap (CAKE) can flip this resistance to support

0
Top cryptocurrencies that are facing major corrections right now

PancakeSwap (CAKE) has shown remarkable strength heading into April. The coin added nearly 60% of its value in the last two weeks or so. If this rise continues, CAKE could in fact flip a crucial overhead resistance zone into support. This will be a huge deal. Here are some of the details:

  • CAKE has faced major resistance around $11 as it looks to maintain its upward trend.

  • The coin has been rejected severally at that price and has since fallen sharply

  • CAKE is likely going to try and target $11 in the coming days.

1649424803552 df7d1a7b f705 4cfc 8beb dbfc279d9091

Data Source: TradingView 

PancakeSwap (CAKE) – Can $11 become support?

If bulls are able to transform the $11 resistance into support, then CAKE has the potential of seeing a major bullish breakout. The DEX coin has tried severally to break past this zone over the last few days but has been rejected firmly. 

As a result, CAKE has fallen sharply in fact, it was down nearly 13% over the last 24 hours. We expect CAKE bulls to try and retest the $11 mark in the days ahead. If indeed they are successful in smashing past it, then we could see the token hit $15 in the near term. 

This will be a gain of nearly 90% from its current price. But if $11 becomes a bridge too far for the coin, CAKE will likely fall back to $8.32 or thereabout before the next bull run.

Should you buy CAKE now?

Well, as a rule, you don’t want to buy any coin when it’s very close to resistance. The downside risks are just very high. A good play here will be to wait and see if the $11 is breached. 

If this happens, then you can buy in and ride the wave. Also, if CAKE is rejected at $11 again, wait for the pullback and enter at $6 or thereabout.

Source link