CAKE posts an 18% “recovery” but its previous downtrend may extend
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- CAKE indicators and metrics mirrored bullishness
- The value motion favored the patrons at a look, however a deeper look confirmed in any other case
PancakeSwap [CAKE] has trended downward for a very long time now. The token initiated a better timeframe downtrend in mid-November 2021 when it was buying and selling at $17.4. There have been a handful of sizeable rallies in between, however the token was caught in a gradual downtrend.
Learn PancakeSwap’s [CAKE] Value Prediction 2023-24
Just a little over two months in the past, the PancakeSwap V3 was launched on Zksync Period. A latest update from the DEX famous that buying and selling quantity had surpassed $850 million. Different metrics noticed an uptick as properly however does this indicate the long-term downtrend has reached its finish?
The shift within the CAKE market construction could possibly be a pink herring
Supply: CAKE/USDT on TradingView
The every day chart above confirmed a gradual downtrend. The 2 vital long-term horizontal ranges have been $1.3 and $1.13. On Monday (23 October), the $1.13 degree was breached alongside the earlier decrease excessive at $1.179.
This was a bullish break out there construction. But, the Fibonacci retracement ranges (pale yellow) pointed to a short aid rally moderately than a break within the downtrend. The 78.6% degree at $1.23 was examined and noticed CAKE costs rejected in latest hours.
Therefore it was doable that CAKE would proceed to hunch decrease within the coming weeks. The indications, which have been lagging by nature, pointed towards bullish energy. The Relative Power Index (RSI) climbed above impartial 50 and the On-Steadiness Quantity (OBV) initiated an uptrend. A transfer previous the native highs at $1.3 could possibly be a powerful signal that the token would embark on an prolonged rally.
On-chain metrics painted a bullish image for the token
Supply: Santiment
The imply coin age of CAKE has trended strongly upward since late September. The social dominance metric noticed way more spikes in September and October than they did between Might and August.
How a lot are 1, 10, or 100 CAKE price at present?
This signaled extra social media engagement that was additionally optimistic behind CAKE. Alternatively, the Market Worth to Realized Worth (MVRV) ratio remained in damaging territory, highlighting an undervalued asset.
