This New Chart Pattern Sets Pancakeswap Coin Price for 18% Upswing

CAKE Price Prediction: In the weekly time frame chart, the pancakeswap coin price shows several lower price rejection candles at $3.54-$3.5 support indicating the traders are actively accumulating at this level. These bullish reversal signs at the combined support of $3.54-$3.5 and lower support trendline of the inverted pennant pattern indicate the Pancakeswap coin price is likely to witness a potential upswing. Here’s how this pattern may also influence the future trend of CAKE prices.

Key Points: 

• The pancakeswap coin price will prolong its sideways trend until the inverted pennant pattern is intact
• A breakout from either trendline of the pennant pattern will signal a trend change.
• The intraday trading volume in the Pancakeswap coin is $50 Million, indicating an 18% gain.

Source- Tradingview

Over the last ten months, Pancakeswap coin price resonated between two converging trendlines indicating the formation of an inverted pennant pattern. This bearish continuation pattern usually appears in an established downtrend and offers a brief consolidation or break period before the downturn continues.

As of now, the CAKE price trades at the $3.7 mark and witnesses intense buying pressure from combined support of $3.54-$3.5 and ascending trendline of the chart pattern. Moreover, the lower price rejection attached to the weekly candles with a low volume indicates a higher possibility of a bullish reversal.

Also Read: What Is Regenerative Finance (Refi) And Who Is It For?

This price reversal may trigger a bull cycle within the channel pattern and drive a short-term bull trend. The potential upswing will likely drive the CAKE price 18% higher and hit the overhead trendline.

However, the traders waiting for a directional price trend should wait for the price breakout from either of the converging trendlines. As the pennant structure is a bearish continuation pattern, the CAKE price is likely to breach the lower trendline and prolong the prior downtrend to the $2.5 mark.

Anyhow, a breakout above the overhead trendline is possible which will project as an early sign of trend reversal.

Technical indicator

Relative Strength Index (RSI): contrary to the sideways price, the daily RSI slope rising with new higher highs and higher lows indicates the underlying bullish momentum is rising which again accentuates an upside breakout is possible.

Exponential Moving Average(EMAs): the downsloping EMAs(20, 50, and 100) reflect an established downtrend.

Pancakeswap Coin Price Intraday Levels

• Spot rate: $3.7
• Trend: Bearish
• Volatility: Low
• Resistance levels- $4 and $4.36
• Support levels- $3.51 and $4.4