Overcoming stiff resistance near the $2 threshold, PancakeSwap’s [CAKE] recent resurgence is a key focal point. Despite showing signs of recovery from its lows spanning several months, CAKE is currently at a pivotal juncture where a sustained breakout could inject optimism among bulls.
Is CAKE poised to surpass the 200-day EMA barrier?
In recent times, CAKE has been grappling with breaking through the 200-day EMA at $2.075, a formidable hurdle since April. This EMA has consistently acted as a dynamic resistance level for more than 7 months, with each attempt to breach it being met with quick sell-offs.
The current trading price for CAKE stands around $1.941, slightly above the 20-day EMA at $1.85 and the 50-day EMA at $1.843. The proximity between these two EMAs forms a crucial support zone. Though there is some bullish momentum, it falters just below the $2.1 resistance level.
Traders are advised to monitor the $1.8 support level, where the 20-day and 50-day EMAs converge. A decisive close below this point could trigger a downward trend towards the $1.579 support mark. A bearish crossover between the 20-day and 50-day EMAs might pave the way for CAKE to revisit the $1.8 support area. Further downward movement could potentially expose the coin to the $1.5 support level.
The immediate hurdle lies at $2.071. A successful breach of this barrier could set the stage for further resistance at $2.2 and potentially $2.4.
Having dipped from the overbought region, the RSI is hovering around 55 at present. This trajectory indicates a waning buying pressure in recent days. A potential bounce back from the 50-mark may suggest a subdued sentiment, with prices likely consolidating around the EMAs.
What Did CAKE Derivatives Data Uncover?
Within the last 24 hours, the long/short ratio stood at 0.9324, indicating a slight inclination towards short positions. Conversely, CAKE’s long/short ratio on Binance was noted at 2.12. Furthermore, there has been a noticeable uptick in CAKE’s trading volume, surging by 56.48% to $52.22 million – a signal of heightened trader interest. Additionally, Open Interest saw a marginal uptick of 0.51% to reach $16.5 million, hinting at traders’ optimism and their commitment to sustained positions.
It’s crucial for traders to closely track Bitcoin’s price movements, given the indispensable role of broader market sentiment in shaping CAKE’s trajectory.