PancakeSwap is an automated market maker (AMM), decentralized finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. PancakeSwap allows users to trade BEP20 tokens, stake LP tokens to earn CAKE, stake CAKE to earn more CAKE, and stake CAKE to earn tokens of other projects.

Let us look at the technical analysis of CAKE.
<h2><b>Past Performance</b></h2>
During the last three months, the price of CAKE has seen a significant decline. The price has decreased as much as 44.55% in this period. Opening trade for CAKE took place at $18.52 on November 16, 2021. The downtrend continued throughout the week, and it closed on November 22, 2021, at $14.93. This was a weekly change of 19.38%.

<img class="tv-snapshot-image" src="https://s3.tradingview.com/snapshots/c/CiYoFxNi.png" alt="TradingView Chart" />

Source: <a href="https://www.tradingview.com/x/CiYoFxNi/">https://www.tradingview.com/x/CiYoFxNi/</a>
<h2><b>CAKE Technical Analysis</b></h2>
The chart is clearly showing that the price is likely to <a href="https://www.cryptoknowmics.com/news/uniswap-uni-and-pancakeswap-cake-technical-analysis-bulls-floored/">continue moving downwards</a>. Currently, CAKE is trading at $14.74, which is 1.27% lower than yesterday’s close. Let us now look at what the indicators are showing.

A clear downtrend can be seen in the <strong>OBV graph</strong>. This means that the selling pressure on the price is greater than the buying pressure, thus pushing it downwards.

Currently, at 30.89%, the <strong>Relative Strength Index</strong> is just on the boundary of the oversold region. This means that the price is likely to show a trend reversal in the upcoming days.

In the <strong>MACD graph</strong>, both the fast line and the slow line are negative, moving straight, but in the negative direction. This is confirming the ongoing downtrend, as the MACD is a lagging Indicator.

Yesterday, PancakeSwap announced that it has successfully burned 6,750,268 CAKE tokens. These are worth approximately $106M. This announcement was made on Twitter, by the official PancakeSwap account.
<h2><b>Day-Ahead and Tomorrow</b></h2>
PancakeSwap is a good long-term investment because it is one of the best-performing cryptocurrencies with a huge number of investors. It is also considered one of the best decentralized exchanges for trading BSC Tokens.

<strong>Fibonacci Retracement</strong> shows that the CAKE price is moving downwards, crossing the Fib levels one by one. The next pivot where the price may be tested is at $14.05.

Thus, two indicators are in favor of bears, while the RSI is in favor of bulls. Looking at the overall negative signal, traders may exit the market. Or else, they may place a stop-loss at $14.

However, if the trend reverses, a target can be placed at $16 for the short term.

CAKE Technical Analysis: Large Decline, But Stay for a Balanced Price

PancakeSwap (CAKE) Fibonacci Retracement shows that the price is moving downwards, crossing the Fib levels one by one. The next pivot where the price may be tested is at $14.05.Thus, two indicators are in favor of the bears, while the RSI is in favor of the bulls. Looking at the overall negative signal, traders may exit the market. They may place a stoploss at $14 to do so. However, if the trend reverses, a target can be placed at $16 for the short term. 

Ankita is reading geek by birth, she loves to read and write about finance and now cryptocurrencies and blockchain since 2017. A Bitcoin enthusiast ever since, she likes to understand businesses and how they affect everything else. Ankita contributes on our news bulletin with the latest happening in blockchain, crypto and ICO market specifically.

CAKE Technical Analysis: Large Decline, But Stay for a Balanced Price

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