- PancakeSwap Price augury: One last support remains for the coin, can the bulls survive?
- The pricing has been bearish for a long time.
- MACD has given a signal of buying, should you go for it?
What Is PancakeSwap? A Brief Look
PancakeSwap can simply be explained as a Decentralised Exchange which is based on the BnB chain. Its native token’s name is CAKE. Users can swap BEP-20 standard tokens with BEP20 easily. BEP20 is also a standard token on the BNB that enables the production of tokens. It can be similar to ERC on Ethereum.
CAKE‘s Previous Action and Forecasting
LCR‘s Previous Price Action
The price started rising at July end and faced no rejection till August end. At the level of $26, the price started falling down, which hasn’t stopped till the date of this writing.
While observing the timeframe between May 2022 and April 2023, we witnessed a period of consolidation where price fluctuations occurred within the $5.2 to $2.5 range. This equilibrium was disrupted come May 2023, leading to a subsequent decline.
Current Price Action and Prediction
Currently, there is frequent rejection of bulls so much so that you will find no firm support levels in the weekly time frames back to the past 1 year. However, in the daily time frame, some data is observed
Support and Resistance: There is one major support that is seen on a level of $1.30 followed by an immediate support of $1.41, which can sustain in the short term as it has been tested two times before.
This is followed by an immediate resistance of $1.6 which creates an immediate consolidation zone. If this breaks through, another resistance of $1.77 is there, which is a broken support. It had been tested a long time before.
Indicators: MACD has shown a breakthrough signal line on the last date of July, which means that there could be a continuation of the short-term upward trend in the upcoming days. This can lead the coin to its first support.
RSI on the other hand is claiming that the coin is in the strength, and just above the mid zone as a 54-point indication.
The 100 EMA is way above the current price which is a confirmation of the points seen before. The price is in a deep downtrend from last year. The 50 EMA, on the other hand, is close to the current price action, which supports the RSI.
The price may rise in the short term after the confirmation from the signal line in MACD. But for the medium term, bulls have to push above and beyond the level of $1.772. On the contradictory, if it fell below the only support from the past 2 years, which is at $1.3, this can lead to a longer bearish trend.
Conclusion
PancakeSwap is a decentralized exchange that is used for swapping BEP-20 tokens for BEP20 on the BNB chain, similar to ERC on Ethereum.
The price of CAKE, which is the native token for PancakeSwap, has experienced high volatility in 2021. With the price falling continuously, the coin currently has some resistances and supports that can hold the price in the short term.
Technicals
Supports: $1.41, $1.30
Resistance: $1.16, $1.77
RSI: 54
50 EMA: $1.577
100 EMA: $1.887
