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CAKE coin price remains trapped in the lengthy consolidation phase between 38.20% and 50% Fibonacci Levels. Will it give a bullish breakout?
CAKE, a native utility token of PancakeSwap, is used for various purposes within the growing landscape. Its main functions are:
- Yield farming.
- Staking.
- Participating in the PancakeSwap Lottery.
- Making and voting on governance proposals through the platform's community governance portal.
Let us now take a deep look into the technical analysis of PancakeSwap.
Past Performance of CAKE
CAKE coin price moves sideways within a consolidation phase in the daily chart. The sideways movement ranges between Fibonacci retracement levels of 38.20% at $20 and 50% at $18.25. The presence of a support zone slightly below the range provides bullish demand.
At press time, the coin price is $18.65 with a rise of 1.15% in the market cap as the price gains bullish demand near the support zone. Moreover, the intraday trading volume of PancakeSwap has decreased by 35% in the past day.
CAKE/USD Daily Chart
CAKE Technical Analysis
CAKE coin price trend lower under the influence of a resistance trend line. Thus, the price action builds a descending triangle pattern in the daily chart. Hence, traders can find entry opportunities upon pattern completion.
Upon the trend line breakout, the coin price may find resistance near the Pivot Points at $22 and $27. And, if the sellers gain momentum, the $16 and $14.5 can help oppose the bearish attack.
The RSI slope struggles to sustain above the center mark in the daily chart due to rejection near the 60% mark. However, the RSI indicates bullish divergence in the last two dips at the support zone. Hence, the RSI indicator gives a buy signal for the CAKE coin.
Contrary to the RSI, the MACD indicator gives a sell signal for PancakeSwap in the daily chart. The fast and slow lines touch and can shortly give a bearish crossover.
Upcoming Trend
As per the technical analysis of PancakeSwap, the future trend of CAKE coin price can give a breakout of either side real quick. However, the buying indications dominate the price chart. Thus, traders can shortly find buying opportunities upon bullish breakout.