20 Percent Win! This Altcoin Might Be Moving Next Week!
Altcoins have loosened into key support zones as the largest cryptocurrency sees below $39,000. Although Bitcoin has climbed above $39,500, the upcoming FOMC meeting points to continued volatility. On the other hand, an altcoin that attracts great attention by investors can offer a 20% earning opportunity.
The rising CAKE price is narrowing within a falling wedge pattern. This recovery rally could soon test the overhead resistance of $10. If the resistance is broken, CAKE price could rally to $12.74. However, investors should also be prepared for possible negative scenarios. The CAKE/USDT technical chart has formed a falling wedge pattern on the daily chart.
The recent correction from the $10 resistance pushed CAKE price down 30% and lowered it to the 0.618 Fibonacci retracement level.
Will PancakeSwap (CAKE) Rise?
CAKE price has rebounded from the $7.5 support and investors’ orientation is changing from selling on rallies to saving on dips. The V-shaped rebound fully reversed the correction phase losses and pushed the price up by 26%. Continued buying will revive the $10 high resistance of the previous swing and attempt to start a new bull rally.
If buyers can maintain a strong exit and sustainability above $10, short-term investors can target 20% up, or the 12.75 region. At the time of writing, CAKE is priced at $9.42. But what if, contrary to expectations, sales start again? As a result, we could face a steeper drop to $5.23, with the falling wedge pattern intact.
The ascending 50-day SMA is about to break above the 100-SMA line. This bullish crossover could attract additional buying and support a test of $10. The instantaneous spread between the VI+ and VI- slope reflects the strong bullish momentum. Short-term resistance levels are at $10 and $12.7. Support zones to be followed in a bearish scenario will be $7.46 and $5.23.
It is important how Bitcoin will start the next week, the high BTC correlation in altcoins can bring 20% gains within hours. The FED meeting, which will be held in the first week of May (May 3-4), is of critical importance, and if the extra statements by this date support the 75 basis point expectation, the general decline may continue. Experts think that the markets are pricing in a 50 basis point rate hike, while a 25bp increase would be welcomed by cryptocurrencies.