PancakeSwap (CAKE) has shown remarkable strength heading into April. The coin added nearly 60% of its value in the last two weeks or so. If this rise continues, CAKE could in fact flip a crucial overhead resistance zone into support. This will be a huge deal. Here are some of the details:
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CAKE has faced major resistance around $11 as it looks to maintain its upward trend.
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The coin has been rejected severally at that price and has since fallen sharply
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CAKE is likely going to try and target $11 in the coming days.
Data Source: TradingView
PancakeSwap (CAKE) – Can $11 become support?
If bulls are able to transform the $11 resistance into support, then CAKE has the potential of seeing a major bullish breakout. The DEX coin has tried severally to break past this zone over the last few days but has been rejected firmly.
As a result, CAKE has fallen sharply in fact, it was down nearly 13% over the last 24 hours. We expect CAKE bulls to try and retest the $11 mark in the days ahead. If indeed they are successful in smashing past it, then we could see the token hit $15 in the near term.
This will be a gain of nearly 90% from its current price. But if $11 becomes a bridge too far for the coin, CAKE will likely fall back to $8.32 or thereabout before the next bull run.
Should you buy CAKE now?
Well, as a rule, you don’t want to buy any coin when it's very close to resistance. The downside risks are just very high. A good play here will be to wait and see if the $11 is breached.
If this happens, then you can buy in and ride the wave. Also, if CAKE is rejected at $11 again, wait for the pullback and enter at $6 or thereabout.