davuddadar

CAKE chart formations

Long
BINANCE:CAKEBUSD   CAKE / BUSD
The primary strong capitulation point occurred in May 19th at the $26 price point. Since then, the price has bottomed at $9.50. This makes the $26 the 0.5 level of Fib retracement. From August 20th, the price has ranged in the 0.5 to 0.618 band of Fib speed resistance fan, and has formed a broadening falling wedge (a bullish pattern ) with the target at $26 (again). This $26 level has become a strong resistance which was tested and did not break from August 23rd to 25th.

This time, reaching this $26 level will form a cup and handle pattern with the target of $42.5 (26 - 9.5 = 16.5 ; 26 + 16.5 = 42.5). We may see some resistance at 0.618 Fib level which is around $30, but if this resistance could turn into support, a strong price recovery to the ATH is very much possible in the next couple of months.