- CAKE is forming a triple top pattern, indicating a potential bearish reversal.
- The token is trading below the critical neckline, with a 6.66% decline.
- Failure to reclaim the neckline could lead to a heavy dump and new all-time low.
Crypto analyst CryptoPulse has raised concerns about CAKE, noting the formation of a triple top pattern on the weekly chart. The token is currently trading below a critical neckline of $1.21 to $1.60, at $1.2005, reflecting a 6.66% decline.
The analyst warns that if the weekly candle fails to break above the neckline, CAKE could face a significant drop, potentially reaching a new all-time low.
Triple Top Pattern and Bearish Reversal Risks for CAKE
CAKE appears to be forming a triple top pattern, a technical signal often associated with bearish reversals. The neckline of the pattern spans between $1.21 and $1.60, and CAKE is currently trading below this critical support.
If the token cannot reclaim this level by the end of the weekly candle, there is a high probability that the price could continue to decline sharply. The triple top suggests weakening upward momentum, which could lead to further losses for CAKE.
Weekly Candle Close Critical for CAKE’s Future
The coming weekly close is crucial for CAKE’s price action. If the token fails to reclaim the neckline, it could signal the beginning of a heavy sell-off.
A sustained drop could lead CAKE to print a new all-time low, as the triple top pattern would confirm the bearish trend. CryptoPulse cautions traders to monitor this development closely, as the market’s response to this critical level will shape CAKE’s future trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
