CAKE bulls picked up steam to a new all-time high of $24.52, extending the uptrend into an uncharted zone.
*PancakeSwap (CAKE) pivoted higher early on Friday
*CAKE has gained 14.43% in the last 24 hours and 40.40% weekly
*PancakeSwap (CAKE) rally as traders return to DeFi
PancakeSwap (CAKE) pivoted higher early on Friday, moving towards a new all-time high of $24.52. The RSI is reluctant to exit the overbought zone, suggesting that the market remains vulnerable to downside corrections. Albeit there is still some bullish fuel left in the tank. The strong surge from $17.09 to almost $24.52 within 48 hours was an impulsive price swing, spurring impressive gains. At a present price of $24.10, CAKE has gained 14.43% in the last 24 hours and 40.40% weekly. Providing tailwinds for CAKE price is the renewed interest in DeFi as the NFT frenzy quietly slows down.
PancakeSwap (CAKE) Rallies on Renewed Interest in DeFi
PancakeSwap is a DeFi application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. It is also a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain.
Amid the high gas fees on the ETH network, many DeFi investors keep migrating to projects on Alternative blockchains such as Binance Smart Chain (BSC) offering low transaction costs. This has boosted PancakeSwap’s (CAKE) price while the asset also stands to benefit from being in the vast BSC ecosystem. A recent report from Delphi Digital deduced a correlation between increased gas fees on the ETH network and the increase in activity on PancakeSwap.
CAKE Daily Chart: Bullish
CAKE bulls are currently attempting to sustain the breakout above the fresh highs at $24.52. If they manage to do that, it will suggest the start of a new move that has a target objective of $28.50. Should bullish pressures persist, the door would open for the psychological $30 level and then $36.65. Otherwise, a negative correction may bring the immediate support at $19.74 back into view.
Below that, CAKE/USD may seek support at $17.04 before resorting to the ascending trendline at $15.47. This price action would return CAKE/USD inside the prior consolidation range before the next move begins. The ascending trendline support may put a lid to further losses on CAKE/USD. In brief, PancakeSwap seems to have some bullish fuel in-store, with traders likely waiting for confirmation above $24.52. Alternatively, a pullback towards $19.74 could be expected.
CAKE/USD 4-Hour Chart: Bullish
The 4-hour chart is showing a lot of potential for the bulls. CAKE began a strong surge from the ascending trendline support at $15.56 on Apr. 7, surpassed the MA 50 to rise to highs of $24.37. The bulls may keep pressuring for a close above the $24.37 level in the meantime as the upside bias remains intact. Although trading in an uncharted zone, should the CAKE/USD pair sustain strength above $24.37, the uptrend could mark a new peak at $28. Beyond that, the rally may next reach for the resistance at $36.65.
If positive momentum fades sooner than expected, traders could look for immediate support somewhere between $19.08 and $19.80. The MA 50 at $18.00 could be the next spot to watch if the price decelerates below $19.04. Another step lower may bring the $15.54 ascending trendline support into view. A decisive close below the MA 50 would signal the end of the current bullish phase, switching the outlook back to neutral.
Resistance Levels: $33.66, $30.92, $25.50
Support Levels: $21.20, $18.57, $15.56
Image Credit: Tradingview