Massive Short Liquidation Detected on $CAKE – $10,037 Crushed at $2.436
The bears just got wiped out. A total of $10K in short positions liquidated exactly at $2.436. This signals a potential trend shift or, at the very least, a strong bullish rejection at this level. Here's the full technical breakdown:
Analysis:
Key Liquidation Level: $2.436 – This becomes an immediate support level. Price action around this zone should be closely monitored.
Volume Surge: The liquidation was accompanied by a spike in volume, indicating strong buyer interest stepping in to absorb selling pressure.
Price Structure: $CAKE has been ranging in a descending channel but this liquidation could be the catalyst for a breakout or a fakeout trap before continuation.
Trading Setup:
Buy Zone:
Conservative entry: $2.39 to $2.45
Aggressive entry: $2.42 to $2.46 (near the liquidation wick for scalpers)
Targets:
First Target: $2.61 (local resistance and minor supply zone)
Second Target: $2.77 (trendline breakout zone and previous high)
Final Target: $3.05 (psychological barrier and key daily resistance)
Stop Loss:
Below $2.34 (tight risk management below liquidation support zone)
For safer plays: below $2.29 to avoid getting wicked out in high volatility
Summary: $CAKE just sent a clear message. Shorts got overconfident, and the market made them pay. If the price holds above $2.436, this could be the beginning of a sharp squeeze upwards. Watch for bullish confirmation before entering. Smart money may already be positioning.