PancakeSwap could climb to $3.3 this week but short-term bulls can wait for…

1 year ago 91

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

  • PancakeSwap reached the highs of a short-term range
  • The longer-term inclination remained bearish

The marketplace operation of PancakeSwap has remained bearish connected the terms charts since 11 December. The token recovered bully enactment astatine $3.11, but it inactive did not amusement committedness of a sizeable upward move.

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The beingness of the little timeframe scope offered trading opportunities. Bears volition privation to spot a rejection astatine the $3.21 area, portion bulls tin hold for a retest of $3.24 arsenic enactment earlier buying.

PancakeSwap reaches little clip scope highs and rejection is likely

PancakeSwap sees a bounce from the December lows but the inclination   remained unbeaten

Source: CAKE/USDT connected TradingView

CAKE has traded wrong a scope from $3.21 to $3.12 successful the past 5 days. This little timeframe scope was important to support an oculus on, particularly arsenic the terms approached the scope highs with short-term bullish momentum.

When trading wrong a range, it is much apt that breakouts reverse backmost into the range. Moreover, CAKE was successful a downtrend connected higher timeframes. Therefore, it remained apt that the retest of the scope highs can.24 would beryllium met with selling pressure.

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On the different hand, if the bulls are capable to reclaim the $3.21-$3.24 country and retest it arsenic support, a determination upward to $3.3 tin follow. The Chaikin Money Flow (CMF) stood astatine +0.05 and its ascent showed immoderate buying unit successful the past fewer days. The Relative Strength Index (RSI) besides threatened to interruption retired past neutral 50, a level which has acted arsenic absorption since mid-December.

Dormant circulation continues to hibernate portion terms volatility remains low

The 90-day dormant circulation saw a ample spike successful precocious August, erstwhile the terms began to rally from $3.7. Another spike was witnessed adjacent the extremity of this determination successful precocious September erstwhile CAKE reached the section apical astatine $4.9. Since then, and particularly since mid-December, the dormant circulation showed nary spike successful token movement.

The terms volatility has besides declined successful the past 2 weeks. The 30-day Market Value to Realized Value (MVRV) ratio has consistently dropped since mid-December alongside the price. This highlighted the bearish bias, but besides showed the plus could beryllium undervalued successful the little clip scales.

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