In this analysis, I will examine the CAKE coin. Pancake Swap is a DEX platform on the BSC network, ranking first among DEXs by TVL. This analysis will technically review the platform's coin, CAKE.
๐ Weekly Timeframe: Reaching the Demand Zone In the weekly timeframe, following the break of the $3 support, the price dramatically fell, and after several weeks, it found a bottom at $1.093. With incoming buying volume, it rebounded from this zone and eventually reached up to $4.753.
๐ After the initial contact with this area, the price was rejected and fell sharply again to $1.549, where the second bottom was formed. After a confirming candle, the price moved towards the supply zone near the resistance at $4.753.
๐ The buying volume was very strong in the bullish candles that formed, but after reaching $4.753, we observed a heavy rejection and the price retraced the entire bullish leg. With the RSI reaching the 50 level, the bullish momentum also dissipated.
๐ For an uptrend, as long as the price is below the supply zone, I do not expect large and sharp candles. However, if $4.753 is broken, the price could move towards targets at $9.723 and even $41.575.
๐ฝ If further correction occurs, the most crucial support is at $1.093, which must not be lost.
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Daily Timeframe: More Chart Details and Price Behavior In this timeframe, we can observe more details about price behavior. Currently, the price is in a very tight range box from $2.243 to $2.627, and breaking either of these areas could start a new trend.
๐ If $2.627 is broken, the price could again move up to the $4.753 ceiling. Entry of buying volume and a break of 50 in the RSI will significantly impact this bullish leg.
โณ On the other hand, if $2.243 breaks, the price could move down to the $1.549 support and, if bearish momentum increases, could even break this support and move towards lower lows.
๐ Final Thoughts
This analysis reflects our opinions and is not financial advice.
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