Connect with us
Active Currencies 13535
Market Cap $2,792,915,756,905.00
Bitcoin Share 49.92%
24h Market Cap Change $2.49

PancakeSwap could climb to $3.3 this week but short-term bulls can wait for…

2min Read
PancakeSwap sees a bounce from the December lows but the trend remained unbeaten

Share this article


Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • PancakeSwap reached the highs of a short-term range
  • The longer-term trend remained bearish

The market structure of PancakeSwap has remained bearish on the price charts since 11 December. The token found good support at $3.11, but it still did not show promise of a sizeable upward move.


Are your CAKE holdings flashing green? Check the Profit Calculator


The presence of the lower timeframe range offered trading opportunities. Bears will want to see a rejection at the $3.21 area, while bulls can wait for a retest of $3.24 as support before buying.

PancakeSwap reaches lower time range highs and rejection is likely

PancakeSwap sees a bounce from the December lows but the trend remained unbeaten

Source: CAKE/USDT on TradingView

CAKE has traded within a range from $3.21 to $3.12 in the past five days. This lower timeframe range was important to keep an eye on, especially as the price approached the range highs with short-term bullish momentum.

When trading within a range, it is more likely that breakouts reverse back into the range. Moreover, CAKE was in a downtrend on higher timeframes. Therefore, it remained likely that the retest of the range highs can.24 would be met with selling pressure.


A 608.01x hike on the cards IF CAKE hits Bitcoin’s market cap?


On the other hand, if the bulls are able to reclaim the $3.21-$3.24 area and retest it as support, a move upward to $3.3 can follow. The Chaikin Money Flow (CMF) stood at +0.05 and its ascent showed some buying pressure in the past few days. The Relative Strength Index (RSI) also threatened to break out past neutral 50, a level which has acted as resistance since mid-December.

Dormant circulation continues to hibernate while price volatility remains low

PancakeSwap sees a bounce from the December lows but the trend remained unbeaten

Source: Santiment

The 90-day dormant circulation saw a large spike in late August, when the price began to rally from $3.7. Another spike was witnessed near the end of this move in late September when CAKE reached the local top at $4.9. Since then, and especially since mid-December, the dormant circulation showed no spike in token movement.

The price volatility has also declined in the past two weeks. The 30-day Market Value to Realized Value (MVRV) ratio has consistently dropped since mid-December alongside the price. This highlighted the bearish bias, but also showed the asset could be undervalued in the lower time scales.

Share

Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.