PancakeSwap Shows Short-Term Bullish Sentiment

PancakeSwap (CAKE) has rallied nearly 22% recently, boosting its value significantly after a low of $1.38 on March 11. Over the same period, Bitcoin (BTC) increased by 9.3%.

Despite the impressive gains, uncertainty surrounds CAKE’s potential for further growth. Technical analysis suggests that a stronger demand is necessary, along with Bitcoin surpassing $84.3k, to drive altcoins and PancakeSwap higher.

Challenges and Progress for PancakeSwap

The weekly chart indicates that the $1.51 level serves as a crucial support. CAKE bulls have successfully defended this area during dips in February and March, which is a positive sign.

While the On-Balance Volume (OBV) has risen, it remains less robust than early February. The daily chart highlights a range formation between $1.37 and $2.94. CAKE’s recent gains pushed it beyond the 75% level at $1.76, which may act as support upon retesting.

The token is also navigating a fair value gap, suggesting potential selling pressure ahead. The Relative Strength Index (RSI) is just below neutral 50, indicating a possible bullish momentum shift.

Swing traders may consider a retest of the $1.68-$1.79 region for additional CAKE purchases, targeting profit at mid-range and range highs of $2.16 and $2.94.

Recent data shows increasing Open Interest in PancakeSwap over the last three days, indicating that derivatives traders are optimistic about a long position. The spot Cumulative Volume Delta (CVD) has also risen, although it has dipped in the last few hours.

Overall, the short-term sentiment surrounding CAKE seems bullish, with the potential for price to retest the $1.7 area as support and rise further.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.