Today as the entire crypto market recovers, the DeFi PancakeSwap token is going with the flow, and to find out where the price may be heading I have prepared this technical analysis.
At the time of this writing, CAKE is trading at $ 12.85, accumulating a gain of 13.95% in the last 24 hours. During the last 7 days it maintains an accumulated loss of 9.27%.
Let’s remember that PancakeSwap is an automatic creation market (AMM), which works from the funds deposited by users.
It is currently the 4th largest decentralized application according to DeBank ranking, thanks to a total blocked of $ 4.4 billion.
Plus, it was the busiest decentralized exchange for the past 30 days, with 1.95 million users to be exact.
Uniswap remained the leader by cumulative volume, with $ 287 million, while PancakeSwap was $ 176 million.
Recently a major coin burn was performed, in which 5.6 million CAKE were sent to an unusable wallet.
This supposes a deflationary mechanism, which, added to the tokens that are deposited as liquidity in the AMM, exert upward pressure on the price in case the demand is maintained or increased.
PancakeSwap Token Technical Analysis: Daily Chart
When we review the daily time frame we find a good behavior during the current day, as buyers appear above the large support zone surrounding $ 11.
Now the price seems to want to challenge the short-term bearish tilt. For this trend to change, the resistance at $ 12.93 must be crossed, which would lead to purchases down to a minimum of $ 15.72.
Crossing the resistance at $ 15.72 would mean the resumption of the medium-term trend, as we will see later in the weekly chart.
Still buyers cannot claim victory. Even as long as there is no broken resistance, we are more likely to see a retest of lower demand levels.
The support at $ 9.7 is the closest, and it is the one that should be maintained if the price does not want to generate too negative signals.
In the chart with weekly candles, we note that there is an upward force, much more relevant than the downward inclination of recent months.
In addition, we have seen how the price repeatedly rejects low prices, failing in the attempt to set new lows, which speaks of seller exhaustion.
The current week still has a long time to develop, however for now the outlook is looking bullish.
But I repeat, we need to start seeing higher lows on the daily chart and break resistance.
Concluding this technical analysis, exceeding $ 15.72 can push the PancakeSwap token up to $ 21.45. However, thinking of new all-time highs is not far-fetched.
Losing the $ 9.70 would open the way to sales to a minimum of $ 6.42. Further down the next level of demand is at $ 2.80.
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