- CAKE price analysis is heavily bearish for today, down by 14%.
- The CAKE/USDT pair is currently below the $22.4 significant support.
- The nearest support is at $19.2, where the price action is headed.
- If the trend continues and breaks support at $19, another support is at $18.8.
- The resistance at $22.8 holds as bulls were unable to break through this price level.
The market movement has been surprising for investors today as Bitcoin itself has dropped down by almost 8%. This huge drop in the price of Bitcoin has instilled fear in the souls of investors who are wondering why the price action is still down. The price for Bitcoin has been steadily dropping since 7th September. Bitcoin was unable to breach the resistance at $48.5K and, as a result, fell severely.
Well, for long-term holders, this is definitely the perfect opportunity to jump into a crypto investment, especially altcoins, which have dropped by huge percentages. Pancakeswap has dropped today by over 14%, which presents an extremely rare buying opportunity. The current price of the cryptocurrency is $19, and further downsides might be possible.
The data from Coinmarketcap states that the trading volume for CAKE has surged by over 96.48%. This means that people are coming to buy the dip. Although, the market cap for Pancakeswap has dropped by over 10.53%. The support at $22.4 has been broken, and a straight red candle implies that bears are in charge. The bears were not able to break the resistance at $22.8, leading to this price fall.
CAKE price analysis: Technical indicators are now bearish
Technical indicators in the 4-hour charts below show that the CAKE price analysis is certainly heavily bearish. Such a bearish price action often results in bullish growth, which we will experience in the long term. For long-term Price Prediction of Pancakeswap by Cryptopolitan, visit here.
As visible from the chart below, according to our CAKE price analysis, the bulls have failed to take the market upwards, and as a result, the CAKE/USDT pair has lost the key Moving Averages with three consecutive red candles taking charge of the bearish action. The 50-day and the 100-day Moving Averages are now above the price movement. Although, we might see the bulls trying to take over these key Averages in the short term.
The price movement is no more inside the Bollinger Bands, which have exploded as the price action broke down from the Bollinger Bands’ lower end. This implies that the bears have totally grasped the price action.
CAKE price analysis can be further calculated using the RSI and the MACD indicators. The RSI indicator shows a reading above 20 but below 40. This means the buying pressure is very high, and the price might go into the oversold region. If this happens, this might be the best time to place your buying orders, for the momentum might change later.
Considering the MACD indicator, the MACD line or the blue line has dropped below the orange line or signal line, indicating a bearish crossover. This means that the price will remain bearish in the short term while the histogram flashes red.
CAKE price analysis: Conclusion
The conclusion of our CAKE price analysis is bearish as the cryptocurrency has fallen below the support of $22.4. The resistance at $22.8 is still intact. If Bitcoin falls further and retests the $40K levels, we can expect Pancakeswap to drop down to lower supports at $18.8
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.