PancakeSwap (CAKE) can flip this resistance to support

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.

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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.

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