Bakery Token (BAKE) Price Shows Strong Bullish Signal After Recent Recovery
The price of Bakery Token (BAKE) has rebounded from the support line of an ascending pattern and broken above a short-term resistance area. It has the potential to continue rising in the near future.
Wedge pattern
The price of Bakery Token (BAKE) has been trading within a descending wedge pattern since May 2022. This is a bullish pattern that often leads to breakouts in most cases.
Another bullish signal comes from last week’s candle, where BAKE formed a bullish engulfing candle with very high volume. This candle covered the entirety of the previous five bearish candles, signaling a return of the bulls.
The weekly RSI indicator has formed a significant bullish divergence, a signal that often occurs before a trend reversal to the upside.
Therefore, there’s a possibility that the price of BAKE will continue to rise towards the resistance line of the ascending triangle pattern at $0.16 in the coming days.
A breakout above this line would potentially propel the price of BAKE to surge towards a crucial horizontal resistance at $0.27.
Daily Outlook
The daily chart shows that the price of BAKE has broken above the horizontal resistance at $0.12 and is currently in the process of confirming it as a support level.
If successful, the price is likely to continue its upward movement towards the horizontal resistance around $0.16, which coincides with the descending wedge pattern’s resistance.
The daily RSI indicator supports the bullish outlook as it broke above the descending resistance line and is positioned above 50.
Conclusion
The most probable outlook indicates that the price of BAKE will continue to rise in the future. The nearest target is $0.16, with potential further gains towards $0.27.
The upward trend could be delayed if the price of BAKE breaks and closes below the support zone at $0.12. In that case, a decline towards $0.1 could be expected.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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