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- During the retracement phase, the PancakeSwap token is again trading with support at the $3.5-support level.
- Buyers turned aggressive near the 50-day moving average on the daily price scale.
- Since the beginning of August, trading volume has been declining.
PancakeSwap’s retracement phase has ended, as buyers became aggressive last night. The recent reversal in the cryptocurrency market assisted sellers in completing a bear cycle within such a wide channel pattern. As a result, the cake price was brought back to the big negative trend line in order to regain the bullish momentum.
The Cake price is forming a broad wedge sequence with a potential short-term reversal. Traders reacted aggressively to the pattern’s last turnaround from the resistance trendline on August 11. If buying pressure exceeds negative market sentiment, the cake price may recover to $5.
During the pullback, buyers lost a key support level of the 20-day EMA. However, buyers became more aggressive near the daily price scale’s 50-day moving average. The coin is currently trading at a high of $3.8 at the time of writing. Furthermore, the cake-to-bitcoin exchange rate increased by 3.6% to 0.000181 satoshis.
According to CMC, the market cap of pancake swaps has reached a new high of 4.7 percent at $635 million. The trading volume appears to be low last night and has been declining since early August. Without the appearance of bears, bulls have an opportunity to push the asset’s price higher.
Buyers May Face Trouble Near $4.0 Resistance
The RSI indicator is looking slightly positive as there is an upside move above the 40-level. On the other hand, the MACD daily price scale moved lower after suggesting a bearish crossover.
Conclusion
The PancakeSwap is moving towards $4.0 – an immediate resistance level. Above this level, the price may move towards the 20-day EMA. Besides, the $3.0 level is acting as an important support for buyers.
Support level- $3.5 and $3.0
Resistance level- $4.0 and $5.0
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
