Bullish Surge or Pullback Ahead?

• PancakeSwap is trading near the $2.80 zone.
• CAKE’s daily trading volume is up by over 71%.

Today’s bearish pullback in the crypto market has triggered the crypto assets to sink further into the red zone. Notably, the market sentiment is neutral, and all major assets have slipped back to their former lows. The largest assets, Bitcoin and Ethereum, are trading at $115.9K and $4.4K. Among the altcoins, PancakeSwap (CAKE) chose to trade on the upside. 

CAKE has recorded a surge of over 4.93% in the last 24 hours. In the morning hours, the asset traded at a low range of $2.65. As the bullish wave entered, the price steadily mounted to a high of $2.87. To confirm the uptrend, the asset has tested and broken the key resistance between $2.69 and $2.83 zones. 

According to CoinMarketCap data, at the time of writing, PancakeSwap traded within the $2.80 mark, and its market cap has reached $971.56 million. Besides, the daily trading volume has soared by over 71.07%, touching the $163.04 million range. 

Will PancakeSwap Continue to Climb?

The recent green coloured candlestick of PancakeSwap exhibits the current bullish momentum. The price could climb to $2.86 resistance level. A steady correction on the upside drives the asset’s price to its former high at $2.92 or above. On the downside, a reversal might trigger the bears to slip and test the support at the $2.74 zone. With a strong downside correction, the PancakeSwap price could be pushed deep down toward the $2.68 range or even lower. 

PancakeSwap’s Moving Average Convergence Divergence (MACD) line is above the signal line, which indicates bullish momentum in the market. Also, the price may continue to rise. In addition, CAKE’s Chaikin Money Flow (CMF) indicator, found at 0.06, suggests a mild buying pressure. The positive value shows that more money is flowing in than out. A higher positive value would bring stronger bullish momentum.

CAKE’s Bull Bear Power (BBP) reading of 0.140 signals a slight bullish dominance in the market. As the value is a small number, the uptrend is not very strong. Moreover, the daily Relative Strength Index (RSI) value is sitting at 63.72, which hints at a moderate bullish momentum. Also, PancakeSwap may be approaching the overbought territory if it continues to rise above 70.

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