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Market Cap $2,678,845,520,328.30
Bitcoin Share 49.77%
24h Market Cap Change $-1.54

PancakeSwap [CAKE] slides beneath range lows, but can buyers snipe an entry?

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PancakeSwap [CAKE] slides beneath range lows, but can buyers snipe an entry?

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

  • The market structure was firmly bearish following the loss of the lower timeframe CAKE range.
  • A bullish order block could see a trend reversal, but bulls will need to wait.

Bitcoin regained the $17k mark over the previous day’s trading, and at press time traded at $17.1k. With the FOMC meeting around the corner, volatility was very likely for the king of crypto and every other altcoin. Therefore risk-averse traders can wait for PancakeSwap to decide the direction of its next move before entering any trades.

Read PancakeSwap’s [CAKE] Price Prediction 2023-24

In a recent article, the importance of the lower timeframe CAKE range was highlighted. The $3.74-$4.12 area was an important resistance zone. In the past couple of days, this region was retested and the price fell by 8% since then.

CAKE reaches a bullish order block, a bounce in prices can occur

PancakeSwap [CAKE] in freefall after recent wave of selling, more losses to follow

Source: CAKE/USDT on TradingView

CAKE lost the lows of the range, and at the time of writing traded at $3.72. Highlighted in cyan, a bullish order block was seen on the 4-hour chart. However, the $3.76 horizontal level has already been confirmed as resistance.

To the south, $3.7 and $3.61 are levels of significance. Therefore, these are levels where short sellers from the past couple of days can look to take profits. Since the lower-term timeframe market structure was strongly bearish, it was a risky idea to look for buying opportunities at $3.7 and $3.6.

The RSI slid swiftly beneath neutral 50 to outline the strength of the sellers recently. Meanwhile, the OBV also noted a move southward. However, it treaded atop a level of support from November. A move beneath this line on the OBV would reinforce the idea that sellers were dominant.

The $3.48-$3.6 area, was a pocket of liquidity. In June, July, and August, CAKE bulls wrestled with this area and finally flipped it to support. Its retest in August was followed by a rally to $4.9 by late September. Therefore, another drop into this pocket could see the downtrend reverse. A swing failure pattern near $3.6 could embolden bulls to buy CAKE.

MVRV ratio takes a hit in the recent wave of selling, sentiment remains bearish

PancakeSwap [CAKE] in freefall after recent wave of selling, more losses to follow

Source: Santiment

The 30-day MVRV managed to get a glimpse o the profitable territory a few days ago but was beaten back down by the sellers. Meanwhile, social dominance has repeatedly risen to the 2.3% mark but not much further, which suggested there wasn’t much excitement behind the token in recent months. The weighted sentiment was also negative, which underlined the idea of a lack of hype and enthusiasm.

Given the market conditions, a lack of positive social engagement behind PancakeSwap was understandable. The price charts showed that the downtrend remained strong.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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