PancakeSwap Shows Consolidation; What Does Future Hold for CAKE?

PancakeSwap Shows Consolidation; What Does Future Hold for CAKE?

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CAKE Price Chart

CAKE token is facing stiff consolidation with no sudden upside movement witnessed in the last three months. With price action slowly moving closer to the 100 EMA curve, there is a minor possibility of a breakout. This price action will be further tested at the resistance of $5.1 on the short-term time scale.

RSI during the current phase touched the overbought zones without significant buying in July 2022. The profit booking stance was initiated after a significant gain, which will keep the CAKE token under pressure. The upper wicks formed on the recent candles indicate profit booking sentiment getting stronger, with the bearish engulfing candle of August 2 confirming sellers in control. 

MACD indicator showcases the continuation of the bull run, and the rising wick on the lower-end current candle shows the buyer’s attempt to contribute toward a positive sentiment. Transactional volumes of PancakeSwap should not be considered a technical indicator as this token is multifaceted with limited liquidity, allowing for a rise in volume.

Weekly charts show a loss in volatility each week since the crash in May 2022, and such momentum would require a tremendous push to reach its all-time high of $44.18. The price of PancakeSwap is still trading at a negative of 91.54% compared to its peak valuation.

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Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ – the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world’s leading cryptocurrencies.

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