CAKE is a Defi application that allows traders to exchange tokens, it also provides liquidity via farming, and they can earn fees in return. It is relatively a new cryptocurrency as it was launched in September 2020. On this platform, Pancake uses an automated market maker where the traders trade against the pooled funds. Let us look at the technical analysis of CAKE.
On July 26, 2021, CAKE started trading at $13.93. As of August 1, 2021, the closing price of CAKE was $16.03. In the last 24 hours, CAKE has traded between $15.59-$16.67.
At the time of press, CAKE is trading at $16.12. It is down by approximately 3.62% from the days’ opening price. Indicating high selling pressure. Therefore, the market momentum seems bearish for the day. The price can test the support level of $13.32 soon.
Also, on the daily chart, the MACD and signal lines are moving under the zero range. However, a bullish crossover by the Signal line over the MACD can be seen. Thus, indicating a rise in the price.
However, the lines are near to the zero range. Trend reversal might be on the verge. Therefore, we have to wait and watch if the bulls get active and the buying pressure takes on the selling pressure. In that case, the price can break its immediate resistance level at $17.19.
The RSI indicator is at 62.7%, which is making a bullish divergence and constantly rising from the level of 32% mark. Thus, if the buyers remain strong for the rest of the day, it will break the resistance level and further rise. Hence, we can expect the RSI to take the support and the price will fall for some time.
CAKE is currently trading below the pivot level of $15.64. As the indicators are showing high selling pressure, thus, we can expect the price to fall and soon, take the support of the Fibonacci level of $14.22. If it breaks down from this level of $14.22, it can retest the long-term support level at $12.11.
In case the buying pressure takes over the selling pressure, then after breaking its resistance at $17.05, the price will highlight the next resistance at $18.80.