PancakeSwap (CAKE) most recent recovery sped up its bullish momentum as shown in the daily 20 and 50 EMA.
- PancakeSwap looking bullish
- CAKE price plunges 3.25%
- DMI shows neutral
With the current economy of cryptocurrencies, traders need to know when it’s time to dip their toes and carve their potential to become millionaires.
The ensuing growth of PancakeSwap has brought the alternative coin dangerously close to its short-term EMAs. But in the upcoming sessions, the $4.4-$4.2 area might continue to present obstacles to recovery.
CAKE Shows Rising Wedge Recovery
The rising wedge recovery that CAKE experienced set the stage for its bullish revival. But by re-igniting the relatively brief selling pressure, the $4.2-$4.4 range changed from support to resistance.
According to figures by Coingecko, PancakeSwap is up 6% in the last seven days, and trading at $3.95 as of press time.
Before hitting roadblocks in the immediate resistance range, a potential rebound from trendline support might help buyers advance near-term gains.
Near the EMAs, a slow-moving phase has been caused by these motions. A strong reversal from the trendline support might give the bulls the upper hand and spark a choppy break.
The 20 EMA was able to go above the 50 EMA despite a patterned breakdown, and the currency found support close to the trendline resistance.
In the $4.2-$4.4 level, the current bounce from trendline support may reverse. A bounce back from this range would set up the coin for another attempt at the support of the trendline.
In either scenario, a slide below the trendline’s level of support would send a sell signal and confirm a bullish invalidation.
In order to show a reduction in the selling pressure, the Relative Strength Index (RSI) crawled itself just over the midline point. The bullish advantage might be reaffirmed by maintaining a position above the 50-level.
More so, the selling activity indicated a little ease in the Chaikin Money Flow (CMF). To support their bullish bias, however, traders should watch for a potential closure above the equilibrium.
Meanwhile, the $4 area may present obstacles for the current comeback from the trendline support. Buyers should keep an eye out for a sustained closure above the 20/50 EMA to confirm the bullishness because the indicators are flashing conflicting signals.
PancakeSwap – A Reliable DeFi
The previously discussed possible targets would continue to exist. Finally, keeping an eye on the king coin’s movement may enable you to place a successful wager.
PancakeSwap is the top DEX (decentralized exchange) on the Binance Smart Chain. The most frequented decentralized exchange is this food-themed DEX, which was founded anonymously in 2020 and has quickly gained popularity among DeFi aficionados.
The native token, CAKE, is given to investors in exchange for liquidity and can later be staked once to generate additional CAKE in a supercharged earning process. CAKE is regarded as one of the most reliable DeFi coins and a crucial investment.
CAKE total market cap at $566 million on the daily chart | Source: TradingView.com
Featured image from 10Clouds, chart from TradingView.com