- CAKE was at a critical juncture, with the current pattern acting as a barrier to further gains.
- A successful break above these levels could reaffirm a bullish trend, while a failure could expose CAKE to further downside risks.
PancakeSwap [CAKE] has been on a steady upward trend over the past two months, after hitting a 10-month low in August.
The recent bullish momentum helped the coin climb higher, but can buyers take advantage of this momentum to overcome key resistances?
Recent Price Action and EMA Overview
Source: TradingView, CAKE/USDT
CAKE’s price action has been rising over the past two months, forming trendline support that has kept the coin’s momentum intact.
Despite this steady uptrend, CAKE has struggled to surpass the 200-day EMA, currently at $2,137.
At the time of writing, CAKE was trading at $1.9, just above the 20-day EMA at $1.887 and the 50-day EMA at $1.873. These EMAs were immediate support levels, with price hovering near their boundaries.
The current upchannel on the daily chart resembled a classic bearish flag structure, potentially exposing CAKE to further losses if the price fails to hold above the trendline support.
Any breakdown below the parallel lines and the $1.7 support could push the coin towards the $1.5 region.
Should the market witness a sudden spike in the bullish edge, a decisive close above the current pattern could allow CAKE to test higher levels.
The Relative Strength Index (RSI) was around 50, indicating neutral market sentiment with relatively equal buying and selling pressure. A decisive move below 50 could indicate a renewed bearish attitude.
The $1.7 level was a crucial support aligned with the lower limit of the upward channel. A break below this level could expose CAKE to further losses.
A break above the current pattern could allow the coin to retest the resistance at $2,071 and ultimately challenge the 200-day EMA at $2,137.
CAKE’s derivatives data and market sentiment
Source: Coinglass
Derivatives data indicated cautious sentiment among traders. Open Interest fell 6.26% to $15.25 million, while trading volume fell 43.37% to $15.28 million, reflecting reduced trading activity following recent volatility.
Interestingly, Binance’s Long/Short Ratio for CAKE/USDT was 2.1095, showing a slight bullish bias among traders.
OKX’s Long/Short ratio also stood at 2.4095, indicating that traders on these platforms were optimistic about the coin’s short-term prospects.
Read PannenkoekSwap [CAKE] Price forecast 2023-24
Top traders on Binance have maintained a relatively bullish position, with a long/short ratio of 1.8477, indicating that leading traders are positioning themselves for a potential upward move.
However, traders should keep an eye on broader market sentiment as Bitcoin’s price movement could influence CAKE’s trajectory.
