- PancakeSwap is witnessing extreme bullish momentum at the daily technical chart, having surged by almost 9% in the last 24 hours.
- Social sentiment is improved, indicating buying momentum.
PancakeSwap (CAKE) is showing a powerful bullish trend as it tries to break out of the crucial resistance of $3.00, and it may be a turning point for the altcoin after several months of consolidation. The recent price movement indicates a new wave of investor interest and accumulation stages which may propel the token to greater valuations.
The technical configuration indicates strong bullish indicators in several indicators. The 50-day EMA at $2.41 has traded above the 200-day EMA at $2.27. This pattern is usually an indicator of the initiation of an extended uptrend. This structure shows that the short-term momentum has turned strongly bullish and the price is now trading far above both moving averages, making them dynamic support levels.
As per CMC data, the market sentiment is dramatically better as seen by the 9% increase in the price of CAKE with an impressive 19% increase in daily trading volume. This increase in volume confirms the trend in price and indicates the involvement of institutions and retailers in the rally. The RSI value of 74 shows a robust bullish impetus, but it is close to the overbought range, which implies that in the short term, it might consolidate before the next leg up.
What Next For CAKE Price?
The MACD indicator also supports the positive trend, as it has a bullish crossover and a widening histogram, and the social sentiment indicators have significantly increased, which indicates the growing confidence of the community and the optimism of the market. These basic changes in the psychology of the market are the precursors of major price changes in cryptocurrency markets.
At the moment, CAKE has immediate support at $2.4127, which is almost the same as the 50-day EMA, and this will be a good backing point in case of any pullback. The main resistance is the psychological $3.00 level, which is a long-term resistance that has in the past limited the upward moves. The break above this level decisively may cause further buying pressure and even a measured move to higher resistance areas.
The combination of technical signals, a better market mood, and robust volume indicates that CAKE is in a good position to experience a possible breakout. Traders should, however, watch the RSI to see when it is exhausted and look out to see sustained volume on any breakout above $3.00 to validate the move.
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