PancakeSwap Price Analysis : CAKE down 6% and slipped below weekly low at $3.855

• PancakeSwap (CAKE) lost previous week gains and and forming a deep bearish candle
• Despite recent partnerships with LayerZero labs and other positive news, bears are dominating  token prices.
• MACD generated fresh negative crossover whereas RSI approaching oversold zones

PancakeSwap (CAKE) has showing initial sign of short term bullish trend reversal as it breakdown weekly low with deep red candle and price is down by 6% on a intraday basis, while the 24 hour volume shot up by 30% and volume to market cap ratio stood at 0.042

Recently, the PancakeSwap team announced a partnership with LayerZero labs to bring access to the PancakeBridge and Cake token to Aptos network which may be a good step for increasing the pancake customer base. but presently, traders found it an opportunity to create sell positions.

Higher time frame narrative

On a higher timeframe, CAKE/USDT prices had been quite volatile in the past couple of months but still failed to generate a positive return for investors. In June prices tested yearly lows at $ $2.485 and consolidate a for short span of time, later in August, prices reclaim 50 day ema (pink) which picked up some positive momentum and faced next resistance at $5.120 Recently in November,FTX collapse drived negative sentiment in market which also impacted CAKE and dragged the prices again back to support zone $3.577

The 200 day ema (green) at $4.826 sloping downwards indicates a trend to remain weak on a positional basis. The 50 day ema (pink) at $4.070 will act as an immediate hurdle for bulls on coming days. As of now prices had broken previous week low and may approach an important support level of $3.577 and if prices slipped below $3.577 we may see further downside towards yearly low support zone at $3 and below.

Smaller time frame narrative

On a lower time frame, CAKE picture looks similar to higher time chart but here the prices are trading in a tight consolidation range between $3.577 to $4.131 which may likely break either side and price may see further expansion in coming weeks. Few weeks ago, The super trend indicator generated a sell signal and bears are still dominating the short term trend. As of now, $4.131 will be a hurdle for short term traders, if bulls succeed to trade above $4.131 we may see some upside momentum towards $5.120

MACD generated negative crossover

MACD had shown a bullish histogram in the past couple of days, even prices also followed the same but, recently MACD crossed the signal line below and generated fresh negative crossover indicating prices may witness some selling pressure from higher levels but, the intensity of weakness can be visible with red histogram bar.

Summary

PancakeSwap teams had partnered with LayerZero zero labs to bring access to the PancakeBridge and Cake token to Aptos network, but prices had not reacted positively  indicating speculative position building up on CAKE/USD. If we go with price action analysis, aggressive traders and investors should avoid buying at current levels as we are expecting little more downside in coming weeks.

Technical levels

Resistance levels : $4.131 and $5.120

Support levels : $3.500 – $2.855

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 financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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