PancakeSwap (CAKE) Price Action: Sweet Gains Ahead or a Bitter Correction?

• PancakeSwap is hovering near the $2.45 zone.
• CAKE’s daily trading volume has surged by over 60%.

1.33% pullback in the crypto market has pushed the assets to sink into the red sea, with neutral sentiment lingering within the market. The major assets have fallen back to their former lows, with the largest asset, Bitcoin, trading at around $104.7K. Meanwhile, PancakeSwap (CAKE) has posted a spike of over 1.10% in the last 24 hours

PancakeSwap kicked off the trading day on a negative note, visiting the daily low at $2.41. As the bearish wave faded, the asset sent the price to a high of the $2.51 range. At press time, PancakeSwap traded at the $2.45 mark, with its daily trading volume up by over 60.68%, reaching $152 million

While zooming in on the monthly chart, CAKE has gained over 25%. The month began trading at around $1.94, and the bullish shift triggered the asset to gradually ascend to a high range of $2.88.

Where is PancakeSwap Headed Next?

The four-hour candlestick of PancakeSwap reports a brief bullish momentum. With the bullish support, the price could move upward to the $2.51 range. A steady climb above this mark might drive the asset’s price to its previous high at around $2.60 or above. It will likely initiate the golden cross to strengthen the price movement

On the downside, as the bullish shift fades, the bears might trigger the asset to retrace and test the support near the $2.40 level. Further correction on the downside might establish the potential bears of the PancakeSwap. The price could push the death cross to emerge and find a support zone at around $2.30 or even lower

*CAKE chart (Source: TradingView)*In addition, the Moving Average Convergence Divergence (MACD) line and signal line have briefly crossed above the zero line. This crossover suggests a shift from bearish to bullish momentum. This may mark the beginning of an uptrend. CAKE’s Chaikin Money Flow (CMF) indicator settled at -0.10, indicating mild selling pressure in the market, with the money flowing out of the asset

CAKE’s Bull Bear Power (BBP) reading of 0.075 points out that the bulls have a slight dominance. It may lead the current price to rise above if the bulls are reinforced. Moreover, the daily relative strength index (RSI) value is found at 53.62, which implies a neutral to slightly bullish momentum in the market.

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