- PancakeSwap is hovering at the $1 zone.
- CAKE’s trading volume has reached $32.45M.
A brief spike in the crypto market is not enough to push the tokens out of the red zone. All major digital assets are trading on the downside, losing momentum day by day. As the year is ending, the fear sentiment is still lingering, triggering the prices to revisit their former lows. Among the altcoin pack, PancakeSwap (CAKE) has posted a spike of over 3.57% in the last 24 hours.
PancakeSwap kicked off the day trading on a bearish note, with the daily low noted at $1.83. With the bulls attempting to command the asset, the price mounted toward a high range of $1.90. If the bullish spike builds more momentum, the price movement of the asset results in adding gains.
According to CoinMarketCap data, at the time of writing, PancakeSwap traded within the $1.89 mark, and its market cap is resting at around $633.62 million. In addition, the daily trading volume of CAKE has dropped briefly and reached the $32.45 million zone.
PancakeSwap’s Next Move: Rally or Retrace?
The Moving Average Convergence Divergence (MACD) line of PancakeSwap has briefly moved above the signal line, implying a short-term bullish crossover. A potential attempt to climb to the upside is seen. Moreover, the Chaikin Money Flow (CMF) indicator at 0.11 shows moderate buying pressure in the CAKE market. The capital is flowing into the asset, supporting accumulation. As long as it stays above zero, it strengthens the uptrend.
CAKE chart (Source: TradingView) PancakeSwap’s brief bullish momentum might push the price to move upward to the $1.94 resistance range. An extended upside pressure could send the asset’s price to a high of $1.99 or above. Gradually, the bulls initiate the golden cross to unfold, to strengthen the price.
On the flip side, if the bears appear, they might trigger the asset to retrace and test the support at the $1.84 level. A steady correction on the downside might establish the death cross of PancakeSwap and lead the way to find a price zone downside at $1.79 or even lower.
CAKE’s Bull Bear Power (BBP) reading of 0.059 hints that the bulls have a slight dominance. The positive value shows mild buying strength, though momentum is not strong yet. Furthermore, the daily Relative Strength Index (RSI) value of PancakeSwap is found at 64.69, which points to strong bullish momentum. It is approaching overbought territory. If it pushes above 70, a pullback may occur; otherwise, momentum favours the bulls.
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