The technical Analysis of CAKE this week will explain about DeFi blockchain. Pancakeswap is a blockchain-based DeFi applications platform. Users can exchange coins and provide liquidity through farming. They will also earn some fees in return for their services. It is a decentralized exchange for swapping BEP20 coins over the Binance smart chain network. To see this technical analysis, this open-source protocol follows the AMM( Automated Market Maker) model and CAKE is its native token.
On March 18, 2021, CAKE started trading at $10.33. On March 25, 2021, CAKE closed at $11.92. Thus, in the past week, the CAKE price has surged by roughly 15%. In the last 24 hours, CAKE has traded between $11.17-$13.50.
Currently, CAKE is trading at $13.34. The price has increased from the opening price of $11.92. Thus, the market seems bullish.
The A/D indicator is upward sloping. Hence, whale accumulations are higher than whale distributions. High buying activity will exert upward pressure on the CAKE price. Thus, we can expect the price to rise further.
The MACD and signal lines are positive. Moreover, a bullish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is strongly bullish and the price is poised to increase further.
The RSI indicator is at 60% now. It has just fallen from the 70% market. Thus, buying pressures are still high. Swing traders can go short at this point in time. Hence, we can expect the price to go up.
Currently, the price is nearing the second Fibonacci pivot resistance level of $13.59 and will break out of it soon in this technical analysis. In some time, the price will break out of the third resistance level of $14.46 too, as the bulls are very strong.
The price has comfortably broken out of the 23.6% FIB retracement level of $12.91 and will soon breach the 23.6% FIB extension level of $13.99. Thus, the price uptrend is likely to continue today and tomorrow.