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PancakeSwap (CAKE) has exhibited an upward performance in recent days. It gained 13% last week and is up 8.2% in 24 hours.
These gains came after a month-long consolidation around $1.2-1.3.
CAKE has been trading in this range for most of the last 15 months. At the time of this writing, he had managed to return to the range.
Can the bulls continue the run?
Examining the long-term downtrend
The $1.5 horizontal level has been a key support/resistance since July 2023. In fact, last year’s price action showed that: that cake the bulls were weak.
Moreover, for more than half a year, Bitcoin (BTC) CAKE, which broke new all-time records and remained comfortably above the $ 100 thousand level, struggled to break the $ 3 resistance.
Even when it did so, the breakout remained constrained in the $4.2-$4.6 supply zone, which has existed since May 2022.
In other words, shareholders were eager to make profits and there wasn’t enough demand to sustain the move.
Swing traders and investors buying CAKE in “value areas” such as $1.3 should keep in mind this threat from for-profit activities as prices approach important long-term resistances. The closest was the mid-range level at $2.16.
This was the swing point that needed to be broken on the 3-day chart to start the PancakeSwap token trend upwards on higher time frames.
Strong short-term rise for CAKE
Open Interest behind CAKE perpetual contracts increased by 28% in the last 24 hours.
Speculators were eager to trade on the altcoin’s strong momentum. Rising Spot CVD indicated strong spot market demand and signaled a near-term sustainable move.
The $1.5 and $1.6 levels were immediate resistance levels to overcome. The first was breached and the second was the next short-term target.
A pullback towards $1.40-$1.45 in the next week or two could be used to purchase PancakeSwap tokens. The short-term trend has been bullish and investors need to follow Bitcoin trends to navigate altcoin trends.
Investors currently holding long positions can make profits in the range of $1.5-$1.6 and wait for the market to hint at its next move.
Final Summary
- PancakeSwap was in a long-term downtrend but its recovery from $1.3 to $1.5 showed strong short-term bullish momentum.
- A pullback from $1.6 is possible in the coming days, and Bitcoin price trends will influence PancakeSwap’s movements.
