Key Takeaways
- PancakeSwap (CAKE) could see massive upward momentum if it clears the $4.75 level.
- CAKE’s Spot Taker CVD metric shows strong, aggressive buying activity over the past week.
- PancakeSwap’s Chinese X account has been regained, with no impact on user data.
Earlier today, PancakeSwap’s Chinese X account was compromised, but the team quickly regained full control, with no impact on user data or platform security. However, the effect on its native token, CAKE, is already evident, as it has dropped over 3.55%, according to TradingView data.
PancakeSwap (CAKE) Current Price Momentum
Despite the account recovery, CAKE’s price has failed to rebound. It is currently trading near $4.22 and has seen significant investor and trader activity, with its trading volume jumping 15% to $1.15 billion over the past 24 hours.
CAKE Technical Outlook: Key Levels to Watch
TimesCrypto’s technical analysis shows that CAKE remains bullish and is in an uptrend, while the current downside appears to be a correction following a 42% gain over the past two days.
It’s worth noting that CAKE’s price reversal has begun from a strong resistance level at $4.75, a level historically known for triggering reversals.
According to TradingView’s weekly chart, since May 2022, the asset has approached this key resistance more than eight times, each time experiencing significant downside momentum. Today’s pullback appears to follow this historical pattern.
Based on the current price action, sentiment appears to have shifted. If momentum continues and CAKE breaks its key resistance, closing a daily or weekly candle above $5, it could see a parabolic move of over 98%, potentially reaching $10.50.
This mirrors its performance over the past two weeks, when it gained more than 85%, according to TradingView’s weekly chart. However, a reversal is possible if it fails to break the $5 level.
At press, CAKE’s Average Directional Index (ADX) on both the weekly and daily charts is above 30, indicating strong directional momentum in the market. Meanwhile, its Supertrend indicator has turned green and moved below the asset price, confirming the bullish trend.
On-Chain Hints Strong Buying Activity
A deeper look shows that CAKE’s on-chain metrics also support a bullish outlook. According to CryptoQuant, the CAKE Spot Taker Cumulative Volume Delta (CVD) over the past week has indicated strong buyer dominance in the market. The metric further reveals that taker buy pressure consistently outperformed sell pressure, with today marking the highest buy dominance of the week.
Strong buying activity among participants highlights CAKE’s growing bullish sentiment and hints at the asset’s upcoming potential.
CAKE’s Major Liquidation Levels
Given the current market sentiment, derivative platform Coinglass reveals that intraday traders still believe CAKE may repeat its historical pattern by reversing from the current level.
Data shows that today, CAKE’s major liquidation levels, where traders have shown strong interest, stand at $4.115 on the lower side and $4.64 on the upper side, with the highest participation.
According to Coinglass, at these levels, traders have built $3.05 million worth of long positions and $6.06 million worth of short positions, indicating a strong bearish sentiment among market participants.
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