Panecakeswap is a decentralized finance (DeFi) app that runs through the automated market maker model where users can exchange their tokens and earn money from participating in yield farming. The native token of the network is CAKE which showed a remarkable gain in 2021 by 430% from 8.35 swing low to 44.37 all-time high. However, the price rebounded immediately and failed to show buying signs in the first quarter of 2022.
Pancakeswap started its operation in September 2020 as a decentralized exchange for swapping BEP20 tokens under the BNC. Its automated market maker model allows users to fill liquidity pools and receive LP tokens as a reward. Later on, users can use this reward to reclaim their pool share. However, CAKE and SYRUP are additional tokens in this network.
The recent surge in Decentralized Finance and exchanges made tokens like CAKE a potential investment opportunity. Although the broader crypto market is bearish from the strong US Dollar and interest rate fluctuations, it is high time to find the right place to buy this token.
Let’s see the future price direction of Pancakeswap (CAKE) from the CAKEUSD technical analysis.
CAKEUSD Bulls Await A Strong Breakout
In the weekly chart, the CAKEUSD price made a new all-time low in 2022 at the 5.30 level, with a bearish rejection from the dynamic 20 EMA resistance. Moreover, the weekly RSI is bearish with rejection from 50 neutral levels that may extend below 30 in the coming weeks.
The above technical analysis shows the daily chart of CAKEUSD, where the price trades within a symmetrical triangle that came after making a new swing high at the 10.95 level. Moreover, the RSI remained corrective below the neutral 50 level, where the possibility of testing the oversold 30 level is high.
Based on the CAKE Price Prediction, bears have a higher possibility of controlling the price where a bearish daily candle below the 7.21 support level would be the first bearish sign. In that case, the price may extend its bearish momentum towards the 5.30 weekly support. On the other hand, the swing high of 10.95 came by violating the previous swing level of 8.71. Therefore, a bullish breakout of the triangle with a daily close above the triangle resistance would influence bulls to test the 13.49 resistance level in the coming days. However, before considering the bullish momentum, investors should closely monitor where the broader crypto market is heading and where the rising interest rate by the Fed is the main barrier for crypto bulls.
CAKEUSD Ichimoku Cloud Analysis
According to the Ichimoku Cloud analysis, CAKEUSD remained bearish below the Ichimoku Kumo Cloud, where the most recent price is extremely corrective within an ascending triangle. Moreover, in the future cloud, the Senkou Span A is below the Senkou Span B with a downside slope, indicating possible selling pressure.
This technical analysis shows the H4 chart of CAKEUSD, where traders' dynamic index indicates possible selling pressure. The TDI line remained bearish below the 50 level, where the possibility of testing the lower band is high. In that case, the bearish possibility is strong as long as the TDI line remains below the 50 neutral levels with bearish price action in the chart. Meanwhile, the current price trades below dynamic Tenkan Sen and Kijun Sen, where the Kijun Sen works as immediate resistance.
According to the Panecakeswap Price Prediction, CAKEUSD has a higher possibility of extending the bearish pressure below the 7.21 double bottom pattern to grab the sell-side liquidity. In that case, the primary aim is to wait for a bearish H4 close below the 7.21 level before going short in this pair. On the other hand, a strong rebound and bullish H4 candle above the 7.95 level would alter the current market structure and initiate a bullish move towards the 10.11 area.
CAKEUSD Intraday Price Action Analysis
In the Panecakeswap Price forecast, CAKEUSD's selling pressure is solid as it is backed by the dynamic 20 EMA resistance in the H4 chart, while the most recent high volume level is above the current market price. Therefore, as long as the price remains below the dynamic 20 EMA resistance, it is more likely to break below the 7.21 support level in the coming hours.
This technical analysis shows that the MACD Histogram is highly bearish for a long time where the MACD line is below the neutral area. Meanwhile, the weekly VWAP is above the current price and working as immediate resistance.
Therefore, the current selling pressure in the CAKEUSD may extend towards the 5.31 level as long as it remains below the dynamic 20 EMA. In that case, a bearish H4 close below the 7.21 level would increase the bearishness of the price. On the other hand, the alternative approach is to wait for the violation of 20 EMA and go long after finding a bullish H4 candle above the 7.95 level.
Is Panecakeswap (CAKE) A Sell?
According to the Panecakeswap (CAKE) Price Prediction, CAKEUSD is likely to extend the bearish pressure towards the 5.31 support level in the coming days. In that case, the 7.21 level would be a significant level where a bearish H4 candle below would increase the bearish pressure.