CAKE gains 136% in two weeks – where to next?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• CAKE broke out previous a stern resistance stage at $1.3.
• A retracement may provide a shopping for alternative.

PancakeSwap [CAKE] had been in a long-term downtrend in October, however quickly started to reverse its fortunes. The costs blasted previous the $1.3 resistance in early November, which had been in place since August.

A technical evaluation by AMBCrypto dated the twenty fifth of October famous that CAKE was in a long-term downtrend, however a transfer above $1.3 could be the primary signal that bulls had been gaining management. This has come to cross, and CAKE reached $2.5- a stage it beforehand traded at in Could.

The confluence of a number of components confirmed the place bulls may look to go lengthy

Supply: CAKE/USDT on TradingView

The newest decrease excessive on the one-day chart was at $1.179 and was breached on the twenty third of October. On the identical day, the RSI, which had been resolutely beneath impartial 50 for a lot of months, climbed above the impartial 50 stage.

As beforehand highlighted, the $1.3 stage was a big resistance stage for CAKE. Therefore, when the bulls had been capable of break this resistance as effectively, the chance of a robust rally elevated.

The previous week’s surge to $2.5 was accompanied by a big quantity of shopping for, as mirrored within the On-Stability Quantity. The Chaikin Cash Circulate (CMF) additionally confirmed excessive capital circulate into the market with a studying of +0.27.

The Fibonacci retracement ranges of CAKE (pale yellow) confirmed the 61.8% and 78.6% ranges had been at $1.6 and $1.36 respectively. There was a bullish breaker block (cyan field) at $1.6-$1.8 from the one-week timeframe.

Moreover, the truthful worth hole (FVG) denoted by the white space on the day by day chart coincided with the breaker block, which marked this area as a agency help zone.

The short-term sentiment favored bears, however accumulation was ongoing

Supply: Santiment

The Weighted Sentiment dipped again into the unfavorable space after a quick foray above zero on 4 November, which advised social media engagement was not as constructive as the worth motion for CAKE.

Then again, the MVRV ratio climbed to highs not witnessed since June 2021. This might see longer-term holders promote a few of their tokens for a big revenue. The imply coin age has trended upward since early July. Therefore, addresses continued to amass extra CAKE.

Supply: Coinalyze

Learn PancakeSwap’s [CAKE] Price Prediction 2023-24

The decrease timeframe knowledge from Coinalyze revealed that promoting strain seized management over the previous three days. The Open Curiosity (OI) has slowly however steadily declined previously 24 hours alongside costs.

The spot CVD has been in decline because the fifth of November, and CAKE costs additionally started to slip decrease because the sixth of November. Subsequently, within the short-term, the OI and spot CVD advised a transfer downward may happen for CAKE amidst promoting strain.