PancakeSwap could rise to $3.3 this week but the short-term bulls can wait…

Warning: The information provided does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author

  • The pie switch hit a short-term high
  • The long-term trend was still downward

PancakeSwap’s market structure has been bearish on the price charts since December 11th. The coin found good support at $3.11, but still shows no promise of a significant upward movement.

Is your cake topping blinking green? Check out the profit calculator

The presence of the lower time frame opened up trading opportunities. Bears will want to see a rejection of the $3.21 area, while the bulls may wait for a retest of $3.24 as support before buying.

PancakeSwap hits a lower date range and is likely to be rejected

Source: CAKE / USDT on TradingView

CAKE has been trading in a range of $3.21 to $3.12 over the past five days. This lower time frame was interesting to follow, especially with the price nearing the tops of the range with short-term bullish momentum.

When you are trading within a range, breakouts are more likely to reverse into the range. Additionally, CAKE has been in a downtrend with higher timeframes. Therefore, a retest of the 24 high range is still likely to be met with selling pressure.

A 608.01x increase is on the cards if CAKE reaches BTC market cap?

On the other hand, if the bulls can reclaim the $3.21-$3.24 area and retest it as support, a rally to $3.3 could follow. Chaikin Money Flow (CMF) was at +0.05 and its rally showed some buying pressure in recent days. The Relative Strength Index (RSI) also threatened to break above the neutral 50 level, a level that has acted as resistance since mid-December.

Passive trading continues to rest while price volatility remains low

PancakeSwap sees a bounce from the December low but the trend remains undefeated

Source: feeling

The 90-day respite trade saw a big peak in late August, when the price started to rally from $3.7. Another rally was seen near the end of the move in late September when cake reached a local high of $4.9. Since then, and especially since mid-December, rest trading has not shown a peak in the movements of the tokens.

Price volatility has also decreased over the past two weeks. The 30-day market value to realized value (MVRV) has been declining consistently since mid-December along with the price. This highlighted the bearish bias, but also showed that the asset may be undervalued on lower time ranges.

Leave a Reply

Your email address will not be published. Required fields are marked *