- PancakeSwap (CAKE) is making remarkable performance in the crypto market.
- CAKE has surged by almost 10% and the daily trading volume has surged by 87% in the last 24 hours.
PancakeSwap (CAKE) is creating a lot of noise in the cryptocurrency market after a spectacular showing that has attracted the attention of traders. CoinMarketCap data show that CAKE has increased nearly 10% in the past 24 hours, and its daily trading volume has increased 87 times, which is a sign of high buying demand and more active market involvement.
The technical configuration of CAKE is getting more and more optimistic, with the price strongly trading above key exponential moving averages. At the present price of $2.54, CAKE has been trading above the 50-day EMA of $2.885 and the 200-day EMA of $2.541, both of which are historically important support and resistance levels. This cross structure of shorter-term moving averages over longer-term moving averages is usually the start of a long-term uptrend, and a change in market sentiment as the market turns bearish to bullish.
What Next For PancakeSwap (CAKE) Price?
The bullish momentum is also confirmed by the Moving Average Convergence Divergence (MACD) indicator. The MACD line has moved above the signal line and is moving upwards. The growing bars of the histogram in the positive territory are a sign of increasing bullish momentum, which means that buyers are in full control of the market trend.
To further support the bullish argument, the Relative Strength Index (RSI) is at 75.94, which is well above the neutral 50 mark, and is nearing an overbought position of 70. Although this high RSI value indicates a high buying pressure, traders must be careful because it also shows that there is a chance that the market will experience a short-term pullback or a period of consolidation. The sentiment indicator value of 0.11670857 indicates that the market sentiment is positive, with green bars prevailing in the lower panel indicating positive trader positioning.
According to the existing technical setup and the momentum indicators, analysts are looking at the next important target of CAKE to be the price level of $5. Traders, however, must watch out for possible resistance around the $4.50 mark and observe any bearish divergences that could indicate the end of the current rally. The high volume, good technical indicators, and penetration above major moving averages place PancakeSwap in an advantageous position to keep rising in the near future.
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