BakeryToken (BAKE) is trading inside a short-term bullish pattern but seems to have lost a long-term support level.
BakeryToken has been falling at an accelerated rate since reaching a high of $1.675 on April 1. It’s currently trading at a local low of $0.479 — a 71% loss in value.
The decrease has been swift and there is no discernible pattern in which the downward movement is contained.
An important development is that BAKE has broken down from an ascending support line, and afterward, validated it as resistance (red icon) on May 5.
This is a bearish development that often leads to the continuation of the downward movement.
Market analyst @ahmad_manasrah1 tweeted a BAKE chart showing that the price is trading inside a long-term support area at $0.52.
The support area is created by the January and March lows. Currently, the price is trading slightly below this level but has yet to reach a close below it.
Technical indicators in the daily time frame are bearish. Both the RSI and MACD are falling — the former is below 50 and the latter is negative.
As a result, these indicators suggest that the continuation of the downward movement toward a new all-time low is likely.
Short-term BAKE movement
The two-hour chart shows that BAKE has been decreasing inside a descending wedge since May 5. The wedge is often considered a bullish pattern because a breakout to the upside occurs the majority of the time.
Besides being a bullish pattern, the wedge has also been combined with a bullish divergence in the RSI (green line).
Be that as it may, these signs are not necessarily enough to negate the bearishness of the daily time frame.
Additionally, when using the two-hour chart, it seems that BAKE has already broken down from the $0.54 horizontal support area. This level is now expected to provide resistance.
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