PancakeSwap Price Analysis: Will CAKE Find Support After Decline?

CAKE , the native token of PancakeSwap, has been under bearish influence over the past few months and the investors are showing less interest in buying this asset. The declining prices is causing concern for the token holders as their portfolio is taking a toll.

• CAKE/USDT has been trading with bearish price action since the past few months
• CAKE/USDT is down 55% since the beginning of this year

CAKE price is trading at $1.436 after recovering from $1.311 level. Currently it is up 2.57% which looks like a minor pullback but there is a possibility of lower levels as the overall trend is bearish and there is extreme fear in the market. The fear is causing panic in the market  whereas on  the other side, some investors might see this is a good investment opportunity due to discounted prices. 

Daily chart shows overall bearish trend

Source: CAKE/USDT Binance price chart TradingView

On the daily chart, CAKE/USDT can be seen following a bearish trend since April 2023, when the price broke a major support of $3.296. It then saw a selling pressure which has forced the price to create a new low at $1.311 making it the support. However There is a noticeable increase in the trading volume indicating interest amongst buyers as well as sellers.

PanCakeSwap is below the 200 EMA indicating a bear trend on the daily timeframe.

It can be observed that RSI is creating a bullish divergence which is showing that sellers are getting exhausted and a reversal could be on the way in the near future.

Short Term Charts shows a moderate bounce

Source: CAKE/USDT Binance price chart TradingView

The 4H Chart is showing that a hope emerges amidst the bearish price action as PanCAKESwap was able to find the support around the level of  $1.311.

Also it looks like the price has broken out of a parallel channel on the 4H timeframe suggesting a minor uptrend towards $1.515 which is the first resistance. Though it is to be noted that market sentiments are still bearish so investors must carefully observe the market and look for more signs of reversal.

RSI

The RSI indicator is currently at 51.32 which indicates that the strength is building up and a bullish to sideways condition is expected.

MACD

The MACD indicator has made a bullish crossover on the 4H chart along with strong bullish momentum as per the histogram bars.

200 EMA

As it is observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and in order for a trend reversal, the price must break and trade above the 200 EMA.

Technical levels

Support Levels:$1.311

Current Price:  $1.436

Resistance Levels: $1.515 – Resistance 1

          $1.762 – Resistance 2

Conclusion

CAKE/USDT is trading in a Bearish price action over the past few months and has created a new lower low, which makes it concerning for the investors, All technical indicators are suggesting bearish market. Price needs to sustain at this level or else there could be a further downfall. On the upside, price has multiple resistance levels along with 200 EMA Which needs to be broken  in order to change the trend.