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- 1 PancakeSwap is currently trading at $1.557 while witnessing a gain of 0.39% during the intraday session.
- 2 Cake price trades above the 20-day EMA.
- 3 The year-to-date return of PancakeSwap is -50.96% while the one-week return is 0.38%.
Cake price has been in a bearish trend after it created an annual high at $4.738, which was the result of a bullish rally. The rally commenced at the start of 2023 from the low of $3.155. During the end of April, price gained enough bearish momentum to shatter the yearly lows. Since then, the price had been falling heavily. In the month of May, there was finally a fall in the bearish momentum brought about by the increased participation of bulls.
The price recently formed a support at $1.34 and started to gain bullish momentum. The move was halted at $1.62 and the price retraced to $1.45 to form a support. The cryptocurrency’s price tried once again to rise above the resistance level of $1.62 but was unsuccessful in doing so. The previous candles closed above $1.60, indicating presence of bears near the $1.60 level.
The previous candle had closed as a strong bearish candle and the current candle is bullish. If the current candle can break the lower wick of the previous candle, there is a possibility for the price to head toward $1.45, which would cause a loss of approximately -5.22%. On the other hand, if the price can rise above $1.65, it can target the next resistance level of $1.77.
Development In PancakeSwap Network:
The leading decentralised exchange announced the launch of its third iteration V3 on Polygon zkEVM, which is a scalable and privacy-preserving layer 2 solution of Ethereum. The move is part of PancakeSwap’s strategy to expand its user base and generate protocol revenues across multiple blockchain. The reason behind the PancakeSwap price gained stability because of the launch of V3 upgrade on Polygon zkEVM.
Will Cake Price Reach $2 In July?
The cryptocurrency’s price has positively crossed the 20-day EMA, which indicates rising bullish momentum in the price. Chaikin money flow score is 0.13, indicating strength in the market. CMF was below 0 for the months of April and May, which highlights how strong the bearish momentum was.
The relative strength index (RSI) is 51.22, denoting that the price is in neutral territory and is facing the same pressure from bulls and bears. The price has reached the upper band of bollinger and faced rejection. If bullish momentum prevails, there is a possibility that the price might form support at the 20-day SMA of bollinger.
Conclusion
The market structure and price action for Cake has shifted to being slightly bullish after the price bounced up from the support level of $1.34. The technical parameters indicate that there is a rise in the number of buyers in the market and the price is slowly gaining bullish momentum. If the price can cross above the $1.77 level, there is a probability that it might head toward $2.
Technical levels
Major support: $1.45 and $1.34
Major resistance: $1.77 and $1.93
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
