CAKE gains 136% in two weeks – where to next?
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- CAKE broke out previous a stern resistance stage at $1.3.
- A retracement may provide a shopping for alternative.
PancakeSwap [CAKE] had been in a long-term downtrend in October, however quickly started to reverse its fortunes. The costs blasted previous the $1.3 resistance in early November, which had been in place since August.
A technical evaluation by AMBCrypto dated the twenty fifth of October famous that CAKE was in a long-term downtrend, however a transfer above $1.3 could be the primary signal that bulls have been gaining management. This has come to go, and CAKE reached $2.5- a stage it beforehand traded at in Might.
The confluence of a number of components confirmed the place bulls may look to go lengthy
Supply: CAKE/USDT on TradingView
The latest decrease excessive on the one-day chart was at $1.179 and was breached on the twenty third of October. On the identical day, the RSI, which had been resolutely under impartial 50 for a lot of months, climbed above the impartial 50 stage.
As beforehand highlighted, the $1.3 stage was a major resistance stage for CAKE. Therefore, when the bulls have been capable of break this resistance as nicely, the probability of a robust rally elevated.
The previous week’s surge to $2.5 was accompanied by a big quantity of shopping for, as mirrored within the On-Stability Quantity. The Chaikin Cash Stream (CMF) additionally confirmed excessive capital stream into the market with a studying of +0.27.
The Fibonacci retracement ranges of CAKE (pale yellow) confirmed the 61.8% and 78.6% ranges have been at $1.6 and $1.36 respectively. There was a bullish breaker block (cyan field) at $1.6-$1.8 from the one-week timeframe.
Moreover, the honest worth hole (FVG) denoted by the white space on the day by day chart coincided with the breaker block, which marked this area as a agency assist zone.
The short-term sentiment favored bears, however accumulation was ongoing
Supply: Santiment
The Weighted Sentiment dipped again into the destructive space after a short foray above zero on 4 November, which recommended social media engagement was not as optimistic as the value motion for CAKE.
Then again, the MVRV ratio climbed to highs not witnessed since June 2021. This might see longer-term holders promote a few of their tokens for a big revenue. The imply coin age has trended upward since early July. Therefore, addresses continued to amass extra CAKE.
Supply: Coinalyze
Learn PancakeSwap’s [CAKE] Worth Prediction 2023-24
The decrease timeframe information from Coinalyze revealed that promoting stress seized management over the previous three days. The Open Curiosity (OI) has slowly however steadily declined prior to now 24 hours alongside costs.
The spot CVD has been in decline for the reason that fifth of November, and CAKE costs additionally started to slip decrease for the reason that sixth of November. Subsequently, within the short-term, the OI and spot CVD recommended a transfer downward may happen for CAKE amidst promoting stress.
