Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- CAKE indicators and metrics mirrored bullishness
- The value motion favored the consumers at a look, however a deeper look confirmed in any other case
PancakeSwap [CAKE] has trended downward for a very long time now. The token initiated the next timeframe downtrend in mid-November 2021 when it was buying and selling at $17.4. There have been a handful of sizeable rallies in between, however the token was caught in a gentle downtrend.
Learn PancakeSwap’s [CAKE] Value Prediction 2023-24
A little bit over two months in the past, the PancakeSwap V3 was launched on Zksync Period. A latest update from the DEX famous that buying and selling quantity had surpassed $850 million. Different metrics noticed an uptick as effectively however does this suggest the long-term downtrend has reached its finish?
The shift within the CAKE market construction might be a crimson herring
Supply: CAKE/USDT on TradingView
The each day chart above confirmed a gentle downtrend. The 2 necessary long-term horizontal ranges had been $1.3 and $1.13. On Monday (23 October), the $1.13 stage was breached alongside the earlier decrease excessive at $1.179.
This was a bullish break out there construction. But, the Fibonacci retracement ranges (pale yellow) pointed to a short reduction rally fairly than a break within the downtrend. The 78.6% stage at $1.23 was examined and noticed CAKE costs rejected in latest hours.
Therefore it was potential that CAKE would proceed to droop decrease within the coming weeks. The symptoms, which had been lagging by nature, pointed towards bullish power. The Relative Power Index (RSI) climbed above impartial 50 and the On-Steadiness Quantity (OBV) initiated an uptrend. A transfer previous the native highs at $1.3 might be a powerful signal that the token would embark on an prolonged rally.
On-chain metrics painted a bullish image for the token
Supply: Santiment
The imply coin age of CAKE has trended strongly upward since late September. The social dominance metric noticed much more spikes in September and October than they did between Might and August.
How a lot are 1, 10, or 100 CAKE price immediately?
This signaled extra social media engagement that was additionally constructive behind CAKE. Then again, the Market Worth to Realized Worth (MVRV) ratio remained in unfavorable territory, highlighting an undervalued asset.
