Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
- The market construction and momentum have been firmly bearish
- A retest of resistance can supply a shorting alternative on PancakeSwap
PancakeSwap was buying and selling inside a variety earlier in December. The violent promoting stress on 12 December compelled costs to lose assist at $3.83. A bearish retest of $3.9 as resistance on 14 December set the stage for the downtrend since then.
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The introduction of syrup pools which allowed CAKE staking to earn rewards from new Aptos tasks might spur demand for the token. Nonetheless, on-chain metrics and technical indicators didn’t present a lot promise for the bulls.
Bearish order blocks at $3.4 and $3.7 will impede the consumers
On the four-hour chart, two bearish order blocks have been recognized at $3.7 and $3.45 previously week of buying and selling. Moreover, on the four-hour chart and better timeframes, PancakeSwap has been trending downward since early November.
Primarily based on the transfer down from $3.9 to $3.11, a set of Fibonacci retracement ranges was drawn. They confirmed the 61.8% and 78.6% retracement ranges to lie at $3.6 and $3.73. The market construction was additionally bearish, and the latest decrease highs at $3.7 and $3.49 have to be damaged for the bearish bias to vary.
The Relative Energy Index (RSI) has been under the impartial 50 mark because the bearish retest of the identical degree on 12 December. This confirmed that momentum was firmly within the fingers of the bears. In the meantime, the On-Steadiness Quantity (OBV) noticed a big sell-off on 16 December and has been flat since then.
A retest of the $3.5 and $3.7 areas will supply promoting alternatives, given the longer-term development of CAKE. The 23.6% extension degree of assist at $2.93 is close to a horizontal degree of significance at $2.96.
The energetic tackle rely stays regular however the MVRV ratio notes losses for holders
Over the previous yr, the 30-day energetic tackle rely has steadily been throughout the 155k-170k space. This determine has trended decrease since mid-November and stood at 138k at press time. The Market Worth to Realized Worth (MVRV) ratio (30-day) has additionally been in unfavourable territory since 7 November. This confirmed that PancakeSwap tokens could possibly be undervalued on the decrease timeframes.
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A quick foray above 0% on December 10 was shortly reversed when the value fell from $4 to $3.2 in every week. If the MVRV rises again above 0, short-term holders can start to search for promoting alternatives at important resistance ranges.