- Bulls failed to push Cake past the strong barrier at $3.47 but bears plunged it to $3.123.
- The Bollinger bands suggest that the selling pressure is increasing in the CAKE market.
- Indicators show the bearish trend is set to continue and surpass the support level of $3.12.
Pancakeswap bulls failed to push past the strong barriers at $3.47. However, the bears effectively drove prices lower till they reached support at $3.123. At press time the prices of Pancakeswap had fallen to $3.14 (a 4.19% decrease).
Market capitalization fell by 4.18% to $503,387,474 while the 24-hour trading volume dropped by 37.19% to $24,404,202 as a result of the recession.
The Bollinger Bands show that selling pressure is escalating in the CAKE market as the upper band touches 3.266 and the lower band touches 3.129. The bearish engulfing candlestick pattern supports this downward trend.
According to the price analysis of the daily chart, CAKE started the trading day at an intraday low of $3.11 and has since dipped sideways, forming a descending triangle pattern. Price movement is contained by the 200 and 100 SMA curves, indicating a bearish long-term trend. Additionally, a spike in selling pressure is indicated by the MACD histogram’s present position below the zero line.
Prices have been gradually moving towards the lower band, suggesting that bear vigour will likely prevail, which is another indication that the current market pattern may persist.
The market’s current bearish trend may persist, according to the Relative Strength Index (RSI) line, which is currently at 28.97. Due to the latest decline below its SMA line, which is extending the currently negative trend, investors are concerned about the probability of a bearish persistence.
At the time of publication, the 9-day and 20-day EMA lines and the daily RSI indicator all displayed negative signals. The daily RSI line is now sloping downward toward the oversold region after crossing below the daily RSI SMA line. The 20-day EMA line is above the 9-day EMA line at this time. These two signs point to a significant bearish influence on CAKE’s charts.
On the four hour chart the bears have fully gained control over the past few hours and are showing more signs of decline. The Relative Strength Index (RSI) is 18.40 and moving deeper in the oversold region. This RSI pattern indicates that bulls are fading, and more bearish domination may be expected soon as a result.
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