• Tue. May 28th, 2024

Evaluating Chances of CAKE Breaking Past Short-Term Resistance

Barry Douglas

ByBarry Douglas

Oct 14, 2022

PancakeSwap investors saw impressive news recently as CAKE joined multiple lists that could shift the token’s fate in the near term. For example, CAKE was one of the top-voted BNB projects on crypto data aggregator CoinGecko.

Besides CAKE, SafeMoon, RichQuake, and Baby Doge Coin also joined the list. Meanwhile, CAKE was among the leading decentralized finance (DeFi) projects in social activity on October 13.

That represented optimism as it showed the amplified popularity of the alt within the cryptocurrency community. Nevertheless, CAKE’s popularity didn’t reflect on the chart, painting red. Coinmarketcap data shows CAKE’s value plunged by approximately 10% within the previous week.

While publishing this blog, CAKE traded at $4.23. Surprisingly, the token’s on-chain metrics revealed a different tale, with multiple indexes suggesting trend reversals in the upcoming days.

Investor Happiness

Data from CryptoQuant indicated a massive bullish sign for CAKE. That made market players happy as it suggested better days in the upcoming sessions. Nevertheless, it wasn’t all roses and sunshine. Santiment’s data indicated some metrics didn’t back price surges.

For example, the asset’s MVRV Ration declines, printing a negative sign. Furthermore, CAKE’s 24hr active addresses recorded a dip, showing fewer network users. Also, CAKE recorded declines in its NFT sector within the past week, with NFT trade volume and trade count in USD plummeting.

What to Anticipate

PancakeSwap’s 24hr chart confirmed an ambiguous tale, as some market indicators favored price surges, whereas others suggested possible declines. For instance, the EMA (Exponential Moving Average) Ribbon showed buyers dominated the marketplace.

Moreover, CAKE’s MFI (Money Flow Index) stayed within the oversold region, heightening the price uptick probability in the upcoming days. The CMF (Chaikin Money Flow) dipped into a neutral level.

The Moving Average Convergence Divergence confirmed a bearish cross. And that could limit CAKE from near-term surges. The crypto market recorded impressive actions within the past day.

While publishing this blog, the cryptocurrency market cap stood at $929.41 billion, gaining 4.05% over the previous day. Also, Bitcoin gained 3.21% in the past day to $19,382.89. Buyers should ensure massive volumes to support upsides past the $20K hurdle.

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Barry Douglas

Barry Douglas

Barry Douglas, a seasoned online trading expert, enriches Big Trends Signals with his extensive industry experience, writing insightful guides and comprehensive reviews to assist traders navigate digital markets.

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