Published 7 seconds ago
Along with choppy market sentient, the pancakeswap token remained sideways for the past two weeks. However, this consolidation shows price sustainability above $3.7 support, offering a recovery opportunity to the coin holders. Thus, will we experience further growth in Pancakeswap, or will the downtrend continue?
Key points:
- A bullish reversal from the $3.73 support is set to reach $4 under a favorable bullish scenario
- The 20-day EMA moving near the $4 may encourage sellers to resume the prevailing downtrend.
- The intraday trading volume in the Litecoin coin is $26.5 Million, indicating a 24% gain.
Source- Tradingview
Amid the crypto market’s widespread sell-off, the PancakeSwap token price reverted from the $5 psychological resistance and breached a long-coming support trendline. This sudden downfall tumbled the prices by 26% to hit the $3.733 local support.
However, trying to sustain the lower level, the prices went sideways after this downfall. During this consolidation, the PancakeSwap token price rebounded twice from this $3.73 support, indicating that buyers are defending this level.
In the past three days, the altcoin surged 3.5% and currently trades at the $3.88 mark. Moreover, this downfall was backed by decreasing volume, indicating this pullback is temporary.
Thus, with sustained buying, the coin price should rise another 5.5% to face the immediate supply zone of $4-$4.1. Furthermore, a bullish breakout from $4.1 resistance encourages buyers to further price recovery.
However, if the prices remain below the $4 resistance, the ongoing consolidation will extend for a few more trading sessions and poses a bearish threat of a downtrend resumption.
Technical. indicator
Relative strength index: a bullish divergence in the daily-RSI slope reflects the increasing buying actively near the $3.73 support.
EMAs: the downsloping EMAs(20, 50, and 100) assist sellers in maintaining a prolonged downfall.
PancakeSwap Token intraday price levels
- Spot price: $3.86
- Trend: Bullish
- Volatility: Medium
- Resistance Levels: $4-$4.1 and $4.3
- Support Levels: $3.733 and $3.55
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/volume-action-hints-temporary-correction-in-pancakeswap-token-buy-now/