Crypto Signals Indicates a Turnaround for CAKE and PENGU 

• TD Sequential buy signals hint at a rebound for CAKE and PENGU after a price drop.  
• CAKE faces resistance at $1.7500 while PENGU must break past $0.007000 for gains.  
• Market trends suggest a possible shift, though traders should stay alert to risks.

The crypto market’s volatility continues to provide opportunities, and the latest signals from the TD Sequential indicator suggest potential rebounds for PancakeSwap (CAKE) and Pudgy Penguins (PENGU). According to analyst Ali, both tokens have flashed a buy signal on their 4-hour charts, indicating a possible shift in momentum after extended downtrends.

TD Sequential Buy Signal Emerges for CAKE

PancakeSwap’s 4-hour chart shows a sharp decline, with CAKE dropping to $1.6754 at the time of analysis. The token had previously reached a high of $1.6944 before slipping to $1.6617, forming a consistent bearish trend. However, TD Sequential’s green “13” buy signal and consecutive lower lows suggest that selling pressure may be exhausting.  

Additionally, a TD9 candle has formed, reinforcing the likelihood of a reversal. This setup is usually known by how it aligns with short recoveries, though CAKE still faces resistance near $1.7500 and $1.8000. If bulls regain control, a breakout past these levels could trigger an upward trajectory. Conversely, failure to sustain buying pressure might see CAKE testing support around $1.6000.

PENGU Also Flashes a Buy Signal Amid Market Weakness

A similar pattern emerged on the PENGU/USDT 4-hour chart, where the token’s value as of press sits at $0.006691 after a low of $0.006619. The downtrend is evident, with successive bearish candles pushing prices lower. However, the TD Sequential indicator has issued a “9” buy signal, hinting at a possible bottom formation.  

If historical trends hold, this setup could initiate a short-term relief rally, with the next resistance levels standing at $0.007000 and $0.007500. The token’s previous high of $0.006786 suggests it has struggled to sustain upward movement, but if volume picks up, a recovery could gain momentum.

Related: Stellar (XLM) Set for Rebound with TD Sequential Buy Signal

Will These Signals Hold?

While TD sequential signals often precede rebounds, they are not foolproof guarantees. Crypto markets remain highly unpredictable, with external factors influencing price action. For CAKE and PENGU, maintaining critical support zones will be crucial.

If the buy signals translate into buying interest, both assets could stage a short-term recovery, probably attracting traders looking for quick upside movement. However, if bearish sentiment persists, the signals might prove to be false positives, leading to further declines.

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