CAKEUSDT - BULLISH REVERSAL OR TRAP? - EXPECTING SELL OFF
Symbol - CAKEUSDT
CMP - 2.570
CAKEUSDT is currently experiencing a false breakdown of critical resistance levels, indicative of a bullish rally. The potential further decline in altcoins may be influenced by Bitcoin's ongoing weakness. Technically, the movement in CAKE appears to be a counter-trend strategy, aiming to accumulate liquidity before a possible decline. The altcoin market remains fragile, with most coins still searching for a bottom, while Bitcoin is consolidating but shows signs of a potential decline toward the 91K-90K range.
CAKEUSDT is currently focused on the 2.614 - 2.728 range. If the bears maintain control and keep the price below these levels, the coin may experience a downward trend in the short to medium term.
Resistance levels: 2.614, 2.728
Support levels: 2.420, 2.063
Statistical analysis suggests that a false breakdown often leads to significant market movements, potentially even trend reversals. In this instance, the current movement is a counter-trend maneuver, and if the price experiences a local reversal, the coin will likely be subjected to downward pressure from the prevailing trend. A sustained price drop below 2.614 could intensify the decline, targeting 2.420, 2.060, and 1.040 levels.
CMP - 2.570
CAKEUSDT is currently experiencing a false breakdown of critical resistance levels, indicative of a bullish rally. The potential further decline in altcoins may be influenced by Bitcoin's ongoing weakness. Technically, the movement in CAKE appears to be a counter-trend strategy, aiming to accumulate liquidity before a possible decline. The altcoin market remains fragile, with most coins still searching for a bottom, while Bitcoin is consolidating but shows signs of a potential decline toward the 91K-90K range.
CAKEUSDT is currently focused on the 2.614 - 2.728 range. If the bears maintain control and keep the price below these levels, the coin may experience a downward trend in the short to medium term.
Resistance levels: 2.614, 2.728
Support levels: 2.420, 2.063
Statistical analysis suggests that a false breakdown often leads to significant market movements, potentially even trend reversals. In this instance, the current movement is a counter-trend maneuver, and if the price experiences a local reversal, the coin will likely be subjected to downward pressure from the prevailing trend. A sustained price drop below 2.614 could intensify the decline, targeting 2.420, 2.060, and 1.040 levels.
Trade active
CMP 2.632
Retested resistance line. Short position initiated.
Trade closed: target reached
CMP 2.400
-9% fall from my short level. First target done.
Note
Experiencing volatility because of FOMC minutes & Initial jobless claims.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.