In a new technical analysis, built on Binance smart chain, Pancakeswap is a decentralized cryptocurrency exchange powered by the CAKE token. CAKE is the prime governance token of this open-source protocol to facilitate token swaps. It is an AMM (Automated Market Marker) and a robust platform for decentralized application development.
On April 2, 2021, the opening price of CAKE was $17.14. As of April 9, 2021, the closing price of CAKE was $21.10. Thus, in the past week, the CAKE price has surged by approximately 23%. In the last 24 hours, CAKE has traded between $19.99-$21.18.
Day-Ahead and Tomorrow
Currently, CAKE is trading at $20.25. The price has fallen from the opening price of $21.10. Thus, the market looks bearish.
The MACD and signal lines have turned negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish and we can expect the price to decline further.
The OBV indicator is falling. This indicates that the selling volumes are higher than buying volumes. Hence. Heavy offloading will exert downward pressure on the CAKE price. Thus, we can expect the price to drop further.
Currently, the RSI indicator is at 36%. It faced a bullish swing rejection at 31% and rallied to the current level. However, selling pressures are still on the higher side. Hence, we can expect the price to go down further.
The price has fallen below the second Fibonacci pivot support level of $20.09. It may soon fall below the third Fibonacci support level of $19.67, as the bearish forces are strong at present.
CAKE Technical Analysis
As per technical analysis, the price has tested and fallen below the 23.6% FIB retracement level of $20.27. We can expect the price to soon fall below the 23.6% FIB extension level of $19.71 as well.
As of now, the price downtrend is strong and we can expect the bear-run to continue tomorrow as well.