Closer Look at $CAKE
Just yesterday, Neal McSpadden, co-host facilitator of the weekly AMA, made a great post talking about CAKE and it's dynamics of psychological resistance/support levels at play. While a reliable conclusion of a bullish uptrend can be inferred based on this analysis, but McSpadden simply said that CAKE is at a critical position in a neutral manner. I wanted to dive in deeper into the charts, especially on the hourly chart to come to a trade-changing conclusion.
Before we jump in, we have to acknowledge the double-bottom that's not only prominent in CAKE, but also BTC, ETH, BNB and all the major altcoins out there in the one-day chart:
This is huge. Essentially what this W-pattern indicates is that a resistance and a support level are extremely close to each other, and that the price is sandwiched nice and snug in between them. This W-pattern is further confirmed by the fact that the upwards price volume within it is significantly higher, easily towering over all the volume bars from CAKE's rally from $25 to $42.
To completely satisfy the criterias of a W-pattern, all the arms and corners of the W shape has to follow a predictable pattern. This is where the 1-hour chart comes into play:
And there you have it, a cyclical movement between the extremes inside an upward facing barrel is the last piece of the triad of the W, and they all have been honoured. The left arm of the W is going to be mirrored on the right, and this is the biggest indication of a strong buy not just for CAKE, but for BTC and BNB as well. Other technical gauges such as the moving averages are pointing in the green, although the relative strength index is a bit neutral at the moment, but I forecast it'll turn to our favour as well.
My financial advice: BUY!
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