Although Bitcoin (BTC) bulls have rejected a drop below $30,000, analysts do not believe that the bullish move on Wednesday, 21, be sustainable and can help the market’s leading cryptocurrency recover its value.
However, as Bitcoin struggles to break the pattern of ever-lowering highs, other cryptocurrencies are signaling a bullish move, therefore, this would be a good time to buy., according to analysts at cryptocurrency analysis firm FXStreet.
So, for the FX team, both PancakeSwap (CAKE) SushiSwap (SUSHI) are screaming, “Buy, buy, buy,” according to the company.
In the case of CAKE, FX analyst Sheldon McIntyre, states that the cryptocurrency charts point to an increase of up to 35%.
He points out that though the price of PancakeSwap has plummeted 80% from the April 30th high of $47.68 to the May 23rd low of $9.38 the token appears to have bottomed out which points to a new recovery cycle if no negative news sinks the entire crypto market again.
Therefore, the analyst points out that to reach a new high the price of PancakeSwap needs a daily close above $13.82 to convince CAKE investors of a new opportunity.
“The rally would be confirmed by trading above the June 23 high of $15.20, offering an additional entry price,” he said.
high on the horizon
Still according to the analyst, a third confirmation would be a trade above the June 21 high of $16.23, freeing up the price of PancakeSwap to test the SMA in a 50-day decline at $18.84 and accumulate a return of 36% from the starting price of $13.83.
CAKE / USD Daily Chart
The analyst points out that in support of the rally there is an improvement in the volume of sentiment on social networks and that according to Santiment, a company specializing in cryptoactive analysis, the number of mentions in support of the c=token has been growing in more than 1000 media channels including Telegram groups, subreddits, Discord groups and chats, monitored by the company.
“It is important to note that sentiment is a secondary indicator, therefore not the main basis for investment decisions. However, the story of 2021 has shown that in the cryptocurrency market, social media plays an important role and, without it, many cryptocurrencies disappear,” he said.
Thus, according to the analyst, as the charts show that the CAKE price may have already reached its minimum and as in the networks the sentiment changes from negative to positive, this would be the time to buy before a new rally.
“Therefore, an explosion in social media traffic suggests that CAKE is commanding attention that could facilitate a conclusive break above the 200-day SMA and spur a rise to the 50-day SMA and a 36% return.”
In the case of SushiSwap, Sarah Tran, also from FXStreet, points out that the cryptoactive has lost more than 70% of its value since the high of May 18th.
“Although SUSHI has undergone a massive correction, the DEX token is ready to make a reversal of fortune”, he points out.
So, according to her, SushiSwap price has revealed multiple trend extension bottoms on the Moment Reversal Indicator (MRI), with SUSHI decreasing on the daily chart.
“This indicator suggests that the token is ready for a trend reversal,” he said.
SUSHI / USDT Daily Chart
In this case the analyst points out that for SUSHI bulls to hold hope, SushiSwap price should close the daily move above the red lines flagged with letters on the chart.
So with that the pressure should increase and the DEX token could mark the 20-day simple moving average (SMA), approaching the 23.6% Fibonacci extension level at $7.70.
“However, if bears take control of the market, SushiSwap could retest its June 22 low of $5.97 before hitting the demand zone that extends to $4.30.”
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