PancakeSwap falls 10% – Yet here’s why bulls remain dominant
- PancakeSwap has shed 11% from the day before today’s native excessive.
- One other worth drop of as much as 7% may begin within the coming hours.
PancakeSwap [CAKE] bulls had been unable to defend the $2.55 assist, however they’ve finished effectively over the previous two weeks to drive costs larger. The sturdy positive factors made on the seventeenth of March left a good worth hole on the 1-day chart.
Clues from this FVG, the vary formation, and the liquidation heatmaps outlined assist ranges the place a bullish reversal may ensue.
PancakeSwap has a bullish outlook, however…
Supply: CAKE/USDT on TradingView
PancakeSwap has been buying and selling inside a spread formation since early 2025. It was highlighted in purple and prolonged from $1.37 to $2.94, with the mid-range stage at $2.16.
The sturdy worth transfer on the seventeenth of March, alongside the very best each day buying and selling quantity in 4 months, was being retraced at press time.
It was anticipated that CAKE would take a look at the $2.94 vary highs and presumably the spherical quantity resistance at $3. Nonetheless, the bears compelled a rejection at $2.85 over the weekend.
The worth transfer additionally left behind a large truthful worth hole, outlined in white. Within the coming days, with the drop beneath the $2.55 assist, a transfer to the mid-range assist at $2.16 was extremely probably.
The OBV has been in a robust uptrend over the previous two weeks, climbing above the February highs. The Superior Oscillator additionally underlined agency upward momentum. Therefore, it was probably that the present retracement wouldn’t prolong beneath $2.16.
Ranges to be careful for
The 1-month liquidation heatmap mirrored the short-term vary that CAKE had shaped between the $2.22 and $2.84 ranges throughout the aforementioned 3-month vary. The heatmap confirmed a cluster of liquidity at $2.36, just under the present market worth.
One other liquidity pocket at $2.22 was additionally seen on the heatmap. Subsequently, these had been the degrees the place a bullish reversal may ensue. The $2.22 stage represented final week’s lows, however the mid-range stage was a legitimate short-term worth goal primarily based on the value motion.
Subsequently, merchants seeking to go lengthy on CAKE ought to watch the token’s response on the $2.22 and $2.15 ranges.
A surge in bullish momentum and buying and selling quantity spikes on the decrease timeframe charts after a CAKE retest of those assist ranges would indicate a bullish reversal in progress.
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
