🎂CAKE follow BNB. Is it time to buy after 15% fall?After BNB annaunce investing in Cakeswap it`s pump for 17% in 8 hours. As you see at volume indicator someone sells a lot of the coins (take profit). But why the price dump to the previous valua area of $4.34-4.42? The SEC raised a suspicion of Binance similar to the Ripple case. Allegedly BNB are shares of the exchange, which is not allowed by law. This news dump even Bitcoin for 6%!
📊 What is good for bulls?
🔶Price is trying to close inside the valua area of $4.34-4.42. It`s the first sign of strength.
🔶The second positive sign for bulls is the volume growth. What this mean? Someone open additional long possition because there is enough liquidity to buy.
🔶If the price start to squeeze to the trendline and additionally volume will grow it will be the third signal that bulls show the strength and ready to pump the price.
🔶Closure of cases of possible violation of the law by Binance exchange will give a strong boost to the price of BNB and CAKE.
Targets for long are marked on chart:
$4.88 - key level
$5.65-5.85 - value are
📊 What is good for bears?
🔶The bulls were traped even on BTC so it`s possible that the price of all alts will follow the BTC price if the dump continue.
🔶If the SEC continues to investigate Binance, all altcoins linked to this exchange (CAKE, BNB, WRX, TWT) will consolidate or fall for a long time. For example, Ripple, which is about 2-3 years in a similar position in the bull market grew less than Bitcoin, although it has a capitalization of 10-15 times less.
🔶The false breakout of the trandline will b additional sigmal that the bulls haven`t enough power to push the price higher.
Binance is the largest crypto exchange and it`s hard to image that it will be banned. Perhaps the exchange will just pay a small fine, since the proceedings only concern 2017.
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P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
