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Since the beginning of November, many major altcoins have been experiencing uncertain price behavior as the top cryptocurrencies have moved sideways due to overhead supply. However, in contrast to this indecisiveness, the Cake price has exhibited impressive growth from $1.21 to $1.90, surging 58% in the last four days. This bullish uptick is likely attributed to the announcement of the Position Manager functionality on the PancakeSwap decentralized crypto exchange. The question is whether this fundamental development is sufficient to sustain a rally beyond $2.00.
Also Read: Bitcoin (BTC) Price May Hit $200k; Here’s Why
Is the Current Recovery Sustainable?
- The overhead supply at $.9 could trigger an 8-14% correction
- A bullish crossover between the 20-and-100-day EMA would bolster buyers to maintain a bullish recovery.
- The intraday trading volume in the Pancakeswap coin is $50 Million, indicating an 18% gain.
Source- Tradingview
The pancakeswap token price began its recovery when it bounced off the $1.05 support level on October 28th. However, the rally gained significant momentum on November 1st following the announcement of a Position Manager feature, developed in partnership with the Decentralized Finance Protocol, Bril Finance.
This feature allows users to deposit funds into a wallet, which are then automatically allocated to liquidity pools for yield farming. It’s important to note that news-driven rallies like this one often experience minor pullbacks to validate their sustainability for higher prices.
Therefore, if the coin price encounters resistance around the $1.942 mark, it might undergo a minor pullback to the $1.73 level, aligned with the 23.6% Fibonacci retracement, followed by the $1.61 level(38.2% FIB). Until the prices sustain above the 50% retracement level at $1.5, the bullish trend remains.
Anyhow, such a pullback could potentially rejuvenate bullish momentum and propel the price beyond the $2 mark.
CAKE vs BTC Performance
Source: Coingape| Pancakeswap Vs Bitcoin Price
When comparing the one-year price behavior, it’s clear that the leading cryptocurrency, Bitcoin, has outperformed the Cake token price. While Bitcoin price has shown steady progress with higher highs and higher lows, the CAKE price has experienced a downtrend, remaining relatively flat close to the $1 mark
- The Moving Average Convergence Divergence: A wide gap between the MACD and the signal line in a bullish crossover stage, indicating strong buying sentiment in the market.
- Exponential Moving Averages: The recently reclaimed 200-day EMA hovering around the $1.75 mark, could provide robust support amid an anticipated pullback.
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