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PancakeSwap was launched in September 2020 and is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. Let us look at the technical analysis of CAKE.
Past Performance of PancakeSwap
CAKE opened on 01 October 2021, at $18.91. There was an overall increase of 10.65% and the week ended with a close at $19.46 on October 7, 2021.
Source: https://www.tradingview.com/x/EQxtsBz1/
CAKE Technical Analysis
CAKE has been moving in a box for the last few days. This box is narrowing further. Traders will have to see in which direction the trend breaks the box, before making a call.
Currently, the trading price is $19.59, which is 0.82% above the previous day's price movements.
OBV has been fairly constant, which again signals that CAKE has entered a box. Traders need to hold their positions or wait to enter the market before making a call.
RSI is currently at 47.86%, which is again near the equilibrium, signaling a box entry.
MACD is not showing any divergence. However, fast and slow lines are moving closer, which means it is very less volatile. Again, a signal to hold the position.
Day-Ahead and Tomorrow
Fib numbers are showing similar results as well. Thus, the CAKE trend has entered a box, which means traders need to wait before making any call to enter or leave the market.