BNB and CAKE Break Out After Double Bottoms – Will BEL Follow?

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In Brief
  • BNB & CAKE have created double bottom patterns.

  • They have broken out from descending resistance lines.

  • BEL is facing resistance at $1.25

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Binance 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.

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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.

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If an upward movement transpires, the closest resistance levels are at $395 and $452, respectively.

Chart By TradingView

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.

Chart By TradingView

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.

Chart By TradingView

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.

Chart By TradingView

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.

Chart By TradingView

Highlights

  • BEL is facing resistance at $1.25. 
  • It is following a descending resistance line.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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