The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinionThe market structure of
has remained bearish on the price charts since 11 December. The token found good support at $3.11, but it still did not show promise of a sizeable upward move.The presence of the lower timeframe range offered trading opportunities. Bears will want to see a rejection at the $3.21 area, while bulls can wait for a retest of $3.24 as support before buying.CAKE has traded within a range from $3.21 to $3.12 in the past five days.
When trading within a range, it is more likely that breakouts reverse back into the range. Moreover, CAKE was in a downtrend on higher timeframes. Therefore, it remained likely that the retest of the range highs can.24 would be met with selling pressure.On the other hand, if the bulls are able to reclaim the $3.21-$3.24 area and retest it as support, a move upward to $3.3 can follow. The Chaikin Money Flow stood at +0.05 and its ascent showed some buying pressure in the past few days.
The price volatility has also declined in the past two weeks. The 30-day Market Value to Realized Value ratio has consistently dropped since mid-December alongside the price. This highlighted the bearish bias, but also showed the asset could be undervalued in the lower time scales.Subscribe to get it daily in your inbox.