Binance coin (BNB) reached a market capitalization of $100 billion on May 3. Therefore, we will take a look at three coins that are part of Binance Smart Chain (BSC), in order to see if there is potential for similar increases.
PancakeSwap (CAKE) has been decreasing since it was rejected by the $44.2 resistance area on April 30.
BakeryToken (BAKE) reached a new all-time high price on May 2.
Cocos-BCX (COCOS) has been following a descending resistance line since reaching an all-time high price on March 11.
CAKE has been increasing since April 18, when it bounced on the $20.50 support area. On April 30, it reached an all-time high price of $44.18, before decreasing.
The high was made at a confluence of resistance levels, created by a long-term (white) and short-term (black) external Fib retracement. Since then, it has been moving downwards.
Despite the ongoing decrease, technical indicators are still bullish. The shorter-term six-hour chart shows an ascending support line that has been in place since April 18.
The line coincides with the $34.7 support area, which is the 0.382 Fib retracement support level. The next support area is found at $31.78, the 0.5 Fib retracement level.
CAKE has seemingly bounced just prior to reaching this line. A breakout above the potential descending resistance line (dashed) would confirm that the token is heading for new highs.
- CAKE has reached resistance at $42.8.
- There is support at $34.7 and $31.7, respectively.
BAKE has been increasing parabolically since April 25. On May 2, it managed to reach a new all-time high price of $8.49. This amounted to an increase of 772% in only seven days.
However, BAKE has been moving downwards since then.
Nevertheless, the wave count suggests that this is only wave four (black) of a five wave bullish impulse. Therefore, after the current decrease, another upward movement would be likely. A potential target for the top of the upward movement is found at $10.95.
On the other hand, the three main support levels are found at $5.63, $4.75, and $3.87. These are the 0.382, 0.5 and 0.618 Fib retracement support levels, respectively.
Since wave four is usually shallow, it is unlikely that BAKE will drop all the way to the $3.87 area. Rather, a bounce at either the 0.382 or 0.5 area is more likely.
- BAKE reached a new all-time high on May 2.
- There is support at $5.63, $4.75 and $3.87.
COCOS has been following a descending resistance line since reaching an all-time high price of $1.87 on March 11. So far, it has made four unsuccessful attempts at breaking out, the most recent on April 29.
However, technical indicators are bullish, supporting the possibility that COCOS is successful in breaking out. In addition, the move of the April 23 lows looks impulsive (highlighted in green).
Therefore, COCOS is expected to be successful in breaking out, and move towards the $1.70 resistance area.
- COCOS is following a descending resistance line.
- There is resistance at $1.70.