CAKE / TetherUS
Short

CAKEUSDT Short Setup – Watching 2.40 Zone for Rejection

342
Hey Traders,

CAKEUSDT is currently trading within a well-defined downtrend, consistently forming lower highs and lower lows. The recent move appears to be a corrective rally, bringing price back toward a key daily resistance zone around 2.40, which also aligns with the descending trendline.

I’m monitoring this area closely for potential bearish price action to develop, signaling a continuation of the dominant bearish trend.

Key Confluences:
Major daily resistance at 2.40

Approaching descending trendline

Market still in a clear downtrend

Possible lower high formation in progress

Trade Plan:
If I see bearish confirmation in this zone (e.g. rejection candles, bearish structure break on lower timeframes, or weakening momentum).

A strong break and hold above 2.40 would invalidate the setup!

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