Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- CAKE indicators and metrics reflected bullishness
- The price action favored the buyers at a glance, but a deeper look showed otherwise
PancakeSwap [CAKE] has trended downward for a long time now. The token initiated a higher timeframe downtrend in mid-November 2021 when it was trading at $17.4. There were a handful of sizeable rallies in between, but the token was caught in a steady downtrend.
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
A little over two months ago, the PancakeSwap V3 was launched on Zksync Era. A recent update from the DEX noted that trading volume had surpassed $850 million. Other metrics saw an uptick as well but does this imply the long-term downtrend has reached its end?
The shift in the CAKE market structure could be a red herring
The daily chart above showed a steady downtrend. The two important long-term horizontal levels were $1.3 and $1.13. On Monday (23 October), the $1.13 level was breached alongside the previous lower high at $1.179.
This was a bullish break in the market structure. Yet, the Fibonacci retracement levels (pale yellow) pointed to a brief relief rally rather than a break in the downtrend. The 78.6% level at $1.23 was tested and saw CAKE prices rejected in recent hours.
Hence it was possible that CAKE would continue to slump lower in the coming weeks. The in
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Author: Akashnath S
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