Pancakeswap Rides Channel To ATH But Weakness Is Showing
May 1st, 2021
CAKE has had an awesome week, rising nearly 100%. The bulls heavily grabbed low prices of $23 as cake rebounded like a cannon. Since the dip, the price has been steadily respecting an ascending channel with a high of near $44 at the time of writing.
For CAKE to continue its uptrend to a new ATH, it must break & hold key resistance of $43.7. The bears have been defending this level well the last 2 days as it coincided with the top trend line of the evident price channel. Throughout the run, from low 20s, CAKE has been held up by the 20 MA.
Major support for cake comes in near $40. The price has risen drastically the last week so the current supports cannot be depended on very much. If CAKE breaks below the bottom trend line of its ascending price channel, It will fall to the $39 range. This is the most probable scenario after such an explosive 100% run. If this zone cannot hold, CAKE may be in for a larger fall to the major support of $36.20.
Confirming a potential bearish view, the MACD has just crossed bearishly for the first time in 48 hours. The histogram also printed a bearish tick. The RSI tells a similar story as the well-respected trend of the last week has been broken.
CAKE intraday levels
Spot rate: $41.68