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Pancake Swap (CAKE) currently occupies the number 3 position on CoinMarketCap’s trending list. According to CoinMarketCap, the price of the decentralized exchange token has dropped 3.40% over the last 24 hours.
As a result, the price of CAKE stands at $4.12 at press time. The altcoin has also weakened against the two crypto market leaders, Bitcoin (BTC) and Ethereum (ETH), by 2.36% and 1.72% respectively.
The daily chart for CAKE/USDT shows that a positive trendline has formed for the altcoin as its price consistently printed higher highs and higher lows over the last couple of weeks. This trend line has elevated CAKE’s price from a low of $3.171 to a high of $4.321.
Unfortunately, the token’s price was unable to maintain its position above the key resistance level at $4.037, which ultimately led to a slight retracement in the token’s price.
The 4-hour chart for CAKE/USDT shows that CAKE’s price is looking to bounce off of the previously-mentioned trend line. Traders may not want to enter into a long scalp position for CAKE just yet as its price is approaching the apex of an ascending wedge chart pattern.
If no clear direction for CAKE’s price movement is established before CAKE’s price reaches the apex, then the altcoin’s price will either drop or consolidate. A drop from this level will mean that CAKE’s price will break below the positive trend line – leaving it at risk of dropping to $3.587.
However, a drop in CAKE’s price in the next 24 hours may just be a retracement and liquidity building move before another leg up to inevitably break the resistance level at $4.037.
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