# Analyzing PancakeSwap: Can CAKE Investors Sustain Upward Price Momentum?
PancakeSwap [CAKE] has been steadily climbing in value for the past couple of months following a significant drop in August. The recent positive momentum has enabled the coin to reach new highs, but the question remains – can buyers continue to drive prices higher by breaking through key resistance levels?
## Examining Recent Price Movements and EMA Analysis
The price of CAKE has surged in the last two months, establishing strong trendline support that has bolstered the coin’s momentum. Despite this upward trend, CAKE has faced challenges in surpassing the 200-day EMA, which is currently positioned at $2.137.
As of the latest data, CAKE was being traded at $1.9, slightly above the 20-day EMA at $1.887 and the 50-day EMA at $1.873. These EMAs serve as immediate support levels, with the price lingering around their borders.
The current uptrend channel on the daily chart resembles a typical bearish flag pattern, potentially exposing CAKE to further declines if it fails to sustain its position above the trendline support. A breach below the parallel lines and the $1.7 support level could signal a downturn, leading the coin towards the $1.5 region.
In the event of a sudden surge in bullish momentum, a decisive breakthrough above the current pattern could propel CAKE to test higher resistance levels. The Relative Strength Index (RSI) currently stands at approximately 50, indicating a neutral market sentiment characterized by balanced buying and selling pressures. A significant drop below the 50 level could indicate a shift towards a bearish outlook.
The $1.7 support level is critical, aligning with the lower boundary of the upward channel. A breach below this level might expose CAKE to further declines, while a breakout above the existing pattern could pave the way for retesting the $2.071 resistance and potentially challenging the 200-day EMA at $2.137.
## Evaluating CAKE’s Derivatives Data and Market Sentiment
Derivatives data reveals a sense of caution among traders, with Open Interest declining by 6.26% to $15.25 million and trading volume dropping by 43.37% to $15.28 million. This downturn in activity follows recent market volatility.
Interestingly, the Long/Short Ratio for CAKE/USDT on Binance is positioned at 2.1095, indicating a mild bullish inclination among traders. Similarly, OKX’s Long/Short Ratio stands at 2.4095, reflecting an optimistic outlook for the coin’s short-term performance on these platforms.
At Binance, prominent traders have maintained a relatively bullish stance, with a long/short ratio of 1.8477, signaling their anticipation of potential upward movements. Nevertheless, market participants should remain vigilant of broader market sentiment, as fluctuations in Bitcoin’s price can impact the trajectory of CAKE.
Overall, the future path of CAKE’s price trajectory hinges on how investors navigate key resistance levels in the face of changing market dynamics.