$CAKE at $20 - A possible return to its ATH in a boiling environment?

The cake, a native token of the PancakeSwap platform, is seeing its usefulness grow over the months with its use through many tools such as farming, liquidity pools, lottery or even the NFT marketplace which will be launched on September 22. Could the evolution of PancakeSwap, self-proclaimed DEX n°1 of the Binance Smart Chain, allow the cake to take off again towards its ATH and, in the best of worlds, continue its road in price discovery ? Let’s do some analysis to get a potential idea of how the next few months will unfold!

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CAKE in trouble against Bitcoin

After a rather quiet price movement during the first few months, cake was able to gain strength with a powerful exit from its accumulation zone, bringing it up to 6500 satoshis during February.

Subsequently, after coming to support the 1650 satoshis, a very nice uptrend was initiated. The oblique trend line perfectly demonstrates the buying pressure that did not hesitate to buy back the small corrections, allowing the cake to register a new ATH at 8240 satoshis.

However, since the flash crash in May, Cake has been struggling to regain strength against Bitcoin. It has been in an accumulation rectangle since May 19 where it has been oscillating between support and resistance at 3673 and 5418 satoshis respectively.

While the lows are getting higher and higher, represented with green curves, the resistance of the rectangle prevents the cake from going for new highs. It is good to know that the more a support or resistance is tested, the more fragile it will be. So will the next time be the right time for Cake? That’s a very good question!

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If this scenario occurs, the machine could quickly recover. However, there will still be obstacles before the ATH. Cake will have to break 6675 satoshis to potentially consider a return to its high. On the other hand, if the cake is forced to break down its accumulation rectangle, we could expect a first stop at the close of the former ATH at 3379 satoshis or even, in a more pronounced decline, at around 2650 satoshis.

So, let’s be careful not to anticipate the break of the rectangle, it’s a risky art that can lead you to pay the piper in the short term.

A cake slowed by a wall of resistance

The first few months of 2021 were very positive for the price of cake, with the token soaring from $0.4 to $21 at the beginning of the year. Thereafter, the asset underwent a short correction and lateralization of the asset for a few weeks before starting again for a second bullish leg where a new ATH was registered: the $ 44.3

This very powerful movement formed a pIn theory, the probability of a downward breakout was high, which eventually occurred. In theory, the probability of a downward breakout was high, which eventually occurred. Subsequently, after the flash crash in May, the price twice came to rest on a long-term support, effective since the consolidation of February/March between the two upward movements: the $9.5

Since the end of July, a bullish trend has been initiated, allowing the cake to recover some important levels. However, there is constant selling pressure that limits the asset’s upward movement, especially since a large block of resistance is currently in place in the area where Cake is located.

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After being rejected in contact with $26/$27, a zone that had already had an effect during the month of April, the dip brought the cake in contact with an interesting support: $17.8. As long as this support is not lost, there is little reason to expect a further decline.

At present, in addition to the resistance zone mentioned above, it is now necessary to retake the $22, a key level for the weeks and months to come.

In an optimistic scenario where this block of several resistances is broken upwards by the cake, several objectives could be offered to us: the $31, the $36, and finally: the famous All Time High, always effective since April.

Cake, the flagship asset of the Binance Smart Chain, known for its use on the PancakeSwap platform, does not seem to have said its last word. Whether it is against BTC or BUSD, the asset is poised to revive a powerful move if it breaks certain technical areas to the upside. The upcoming launch of the NFT marketplace could be one of the potential factors for price acceleration. However, nothing is certain… It is still possible that Cake will go back to searching for its supports, much to the dismay of its passionate investor community.

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