PancakeSwap (CAKE) has been trading against the broader market, especially as the major market drivers have rallied. The coin has lost 0.8% in the last 24 hours and is yet to show decisive price action on the chart. Despite the release of CPI data, the currency has not been affected by that development. CAKE traders are still wary of the asset’s next price move.

The technical outlook for the coin has painted a bearish picture on the chart. Although that seems to be the case, there could be a scenario where CAKE returns. After range trading for weeks, the coin finally broke below its lower band, signaling the possibility of price appreciation. This could prove beneficial for traders planning to record profits from the crypto.

However, risk averse traders should be careful when investing as the coin still continues to mean additional potential loss during immediate trading sessions. The asset still haunts highly liquid pockets, which could prove to be a negative for traders. In order for CAKE to record more gains, the coin needs to break through some vital trading levels.

PancakeSwap Price Analysis – One Day Chart

PancakeSawp was priced at $3.84 on the one-day chart | Source: CAKEUSD on TradingView

At press time, CAKE was changing hands for $3.80. The currency fell below the lower band of the restricted price zone. CAKE was placed between the price bands of $4.20 and $3.90, representing an increase in sales. The coin’s immediate maximum price was $4.08; a move above that could see the coin revisit $4.30.

Breaking the $4.30 mark will clear the way for the altcoin to reach $4.90. However, during the immediate trading sessions, the coin is expected to drop to $3.40 before recovering. The aforementioned level could act as an entry point for buyers. The CAKE amount traded in the last session remained in the red, signifying bearish strength.

TECHNICAL ANALYSIS OF THE CAKE

PancakeSwap showed a drop in buying force on the one-day chart | Source: CAKEUSD on TradingView

The coin has remained in the grip of sellers for the better part of this month. The recent drop in price has pushed CAKE further into the sell zone. The Relative Strength Index was below 40, indicating a strong selling force.

Further selling pressure could send CAKE below $3.40 and then $4.30, resulting in a 26% rally. CAKE fell below the 20 SMA line on weak demand from buyers, indicating that sellers were driving price momentum at press time.

CAKE showed the possibility of an uptrend on the one-day chart | Source: CAKEUSD on TradingView

Corroborating that CAKE could start to book profits, the Parabolic SAR sided with the same observation. The Parabolic SAR determines the direction of the price, and the dotted lines under the candlesticks reflect the incoming uptrend for the coin.

Conversely, however, the Awesome Oscillator exhibiting price momentum turned red, marking a sell signal for the coin. However, the signal was losing strength.



This post PancakeSwap (CAKE) Slides Below Range, Is This An Entry Point For Buyers?

was published first on https://newsbtc.com/news/pancakeswap-cake-slides-below-range-is-this-an-entry-point-for-buyers/

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