CAKE Technical Analysis: Range-Bound Trade Between $21.29 and $17.67, Prices Less Volatile

PancakeSwap is an automated market maker (AMM) — a decentralized finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. PancakeSwap is a Binance Smart Chain-based decentralized exchange (DEX) that was launched by anonymous developers with an apparent passion for pancakes. It uses an automated market maker model, meaning that there are no order books and liquidity pools are used instead. Let us look at the technical analysis of CAKE.

Past Performance of PancakeSwap

The CAKE opened on 11 October 2021 at $18.63. The price continued to remain inside the box for the past week as well, and it closed on 17 October at $19.75. A +6% change was seen over the week.

Source: https://www.tradingview.com/x/EZwT5PuK/

CAKE Technical Analysis

The price continued to stay inside the box. The upper limit was $21.29 and the lower limit was $17.67. Consequently, the price remained to be less volatile as well. The current trading price is $19.68, which is about 1% above the previous day’s close.

OBV is showing a downtrend ending with a straight horizontal line. This can be signal that the buying and selling pressures are now balancing each other. Thus, this is a neutral signal, and traders may hold their current positions.

RSI is at the 49.46% level. It is moving along the equilibrium line. This is again a sign that the price is less likely to change in the coming days. The CAKE traders may hold their current positions.

MACD is both confirming and predicting similar signs. The fast and slow lines are moving together with a constant distance between them. They are approaching the equilibrium line while there is no divergence from the price chart. Traders may hold their positions.

Day-Ahead and Tomorrow

The fib numbers show that the CAKE price is oscillating between the fib levels of $21.16 and $18.52. This is again a signal that the traders may hold their current positions.

Thus, the indicators are giving neutral signals, and thus the traders may hold their current positions till the chart breaks the box.

   
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