PANCAKESWAP Price Analysis: Bearish Dominance is Giving a Hard Time to the Market

• The CAKE price managed to gather some bulls after a protracted period of decline, which caused a price spike, but the return of bearish dominance is causing the price to decline once more over the daily price chart.
• The crypto asset is moving below the 20,50,100 and 200 days moving average.
• The CAKE/BTC pair is at 0.0001817 BTC with a gain of 0.42% 

The CAKE price after sinking for a long managed to accumulate its bulls which made the price pump, but the return of bearish dominance is again making the price drop over the daily price chart. The token needs to call its bulls and make some constant efforts to make the recovery attempt successful.

One major reason behind this return of bearish dominance is the factor that the traditional cryptocurrency, Bitcoin has started rallying bearish which is making the whole crypto market suffer. The BTC price after moving above the mark of 21K has now again started rallying bearishly, which is now giving a free hand to the bears to capture the market. Investors should wait before making any move as the uncertainty in the market is increasing.

The current price for one CAKE token is hovering at $3.84 which is at a small loss of 0.96% in its market capitalization in the last 24 hrs. The token has a trading volume of 37 million which is at a loss of 18.02% in the 24 hrs trading session and has a market cap of 570 million. The volume market cap ratio is 0.06585.

Source: CAKE/USD by tradingview

What do Technical Indicators Suggest?

We can observe the price is currently moving below the negative cross of multiple EMA over the daily price chart and if the bulls made some consistent efforts we can witness a positive cross soon. The MACD indicator displaying the seller’s signal line is moving above the buyer’s line but along with this the red histograms are shrinking which is showing the buyers have also started participating in the market. The relative strength index is indicating a clear increase in selling over the token which is making the price drop. The RSI value is above 45.

Source: CAKE/USD by tradingview

Conclusion

The CAKE price after sinking for a long managed to accumulate its bulls which made the price pump but the bearish interruption is making the price drop. The BTC price after moving above the mark of 21K has now again started rallying bearishly, which is now giving a free hand to the bears. Technical indicators are a bit manipulative this time but overall support bears this time.

Technical levels

Resistance levels: $4.20 and $4.66

Support levels: $3.59 and $3.12

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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