BNB and CAKE Break Out After Double Bottoms – Will BEL Follow?
2 min readBinance Coin (BNB) has created a double bottom pattern inside the $245 horizontal support area. PancakeSwap (CAKE) has created a double bottom pattern and broken out from a descending resistance line afterwards. Bella Protocol (BEL) is facing resistance from the $1.30 horizontal resistance area and a descending resistance line.
BNB
On May 23, BNB reached a low of $211. It bounced immediately afterwards, validating the $245 level as support.
The token returned to the $245 area once more on June 22, creating what looks like a double bottom pattern. The pattern was combined with bullish divergences in the RSI, MACD & Stochastic oscillator.
If an upward movement transpires, the closest resistance levels are at $395 and $452, respectively.
The shorter-term six-hour chart shows a breakout from a descending resistance line and its subsequent validation as support.
This supports the possibility that the double bottom will play out and BNB will continue increasing in the short-term.
The direction of the long-term trend is unclear.
Highlights
- BNB has created a double bottom pattern.
- There is support at $245.
CAKE
Similarly to BNB, CAKE has also created a double bottom pattern, doing so at the $9.50 horizontal support area. The bottoms were reached on May 23 and June 22, and both left long lower wicks in place.
They were combined with considerably bullish divergence in the RSI, MACD & Stochastic oscillator.
The closest resistance levels are at $22.8 and $26.8, respectively.
The two-hour chart shows that the token has broken out from a descending resistance line, which has been in place since June. Afterwards, it validated it as support and is now moving upwards.
Therefore, this supports the possibility that the double bottom pattern will be confirmed.
Highlights
- CAKE has created a double bottom pattern.
- It has broken out from a descending resistance line.
BEL
BEL has been moving downwards since reaching an all-time high price of $5.84 on April 7. The downward movement continued until a low of $0.86 was reached on June 22.
Similarly to both BNB & CAKE, the low was combined with bullish divergences in the RSI & MACD.
However, the token is still facing resistance from the $1.30 horizontal area and is still trading below a descending resistance line.
Until both the area and line are reclaimed, the trend cannot be considered bullish.
Highlights
- BEL is facing resistance at $1.25.
- It is following a descending resistance line.
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