Technical Analysis of CAKE/USDT

2 Ara

The 4-hour chart for CAKE/USDT shows a consolidating price action within a descending channel, following a strong uptrend. The Alligator indicator lines (blue, red, and green) are showing tight convergence, indicating reduced volatility and a potential breakout.

Key Levels to Watch
Support: The price is approaching the $2.81 level, aligned with the 0.618 Fibonacci retracement. This is a critical level to maintain bullish momentum.
Resistance: A breakout above the $3.59 level, which corresponds to the 1.618 Fibonacci extension, could confirm the continuation of the upward trend.
Potential Scenarios
Bullish Breakout:
If the price breaks above the descending channel and surpasses $3.59, it could target higher Fibonacci extensions, signaling a renewed bullish trend.

Bearish Breakdown:
A failure to hold the $2.81 support could result in further selling pressure, leading to a retest of lower levels in the previous uptrend.

Alligator Indicator Analysis
The Alligator lines are acting as dynamic support and resistance. A clear price movement above or below these lines will likely determine the next significant direction.

Summary
Bullish Target: $3.59 (Breakout level).
Key Support: $2.81 (Retracement level).
Traders should monitor the breakout from the descending channel for confirmation of the next move.

Disclaimer: This analysis is for informational purposes only and not financial advice.