CAKE Price Analysis: The bears are putting up a good fight against the bulls

The token is trading between its key Moving Averages.
The pair of CAKE/USDT is trading at the price level of $3.972 with a decrease of -1.59% in the past 24 hours.

PancakeSwap (CAKE) token bulls have gained traction and are driving the token’s price higher. CAKE, the PancakeSwap token, is a BEP20 token that debuted on Binance Smart Chain. CAKE’s primary role is to incentivise liquidity provision to the PancakeSwap platform.

CAKE token on the daily chart

After a retracement, the token has bounced off the demand zone and is on track to break above the 200 EMA. CAKE token is currently trading at $3.972 with a loss of -1.59% in the last 24 hours, as seen on the daily chart. It is now trading above its key Moving Averages of 50 and 200. (Red line is 50 EMA and the blue line is 200 EMA). It remains to be seen whether the token can break above the 200 EMA and continue its bullish momentum.

Relative Strength Index:The asset’s RSI curve is currently at 58.73 and is dropping in value as the token forms a bearish candle on the daily chart. Because of the token’s price decline, the RSI curve has crossed below the 14 SMA. If the bulls can continue their bullish momentum in the coming days and raise the token’s price, the value of the RSI curve will rise.

Analyst view & Expectations

The token has crossed and sustained above the 50 EMA, but we cannot say the trend has reversed; more confirmation is required. Investors are advised not to buy and wait for the token to cross and sustain above the 200 EMA before buying to gain more clarity on the trend’s direction. Intraday traders, on the other hand, have a good opportunity to go short and book profits based on their risk-reward ratios.

According to our current PancakeSwap price prediction, the value of PancakeSwap is expected to climb by 4.51% in the next few days, reaching $ 4.13. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 56. (Greed). Over the previous 30 days, PancakeSwap has 19/30 (63%) green days and 7.90% price volatility. According to our PancakeSwap forecast, now is not a good time to buy PancakeSwap.

Technical Levels

Major support: $3.805

Major resistance: $4.102 & 200 EMA on the daily chart

Conclusion

The token has bounced off the demand zone with strong bullish momentum but still the overall trend of the token is bearish. Investors are advised to wait for a clear indication before acting.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.