Bearish Winds Hit PancakeSwap (CAKE): Can It Defy the Downtrend and Stage a Recovery?

• PancakeSwap is currently trading at $1.57.
• CAKE’s trading volume is up by over 25%.

The day opened with a 2.17% slip in the crypto market, keeping the digital assets within the red zone. With fear at extreme levels, most tokens are losing momentum and hopes of returning to the bullish zone. The largest assets, Bitcoin (BTC) and Ethereum (ETH), are hovering on the downside, each down around 2%.

Among the altcoins, PancakeSwap (CAKE) sees a 0.12% loss. In the early hours, the asset traded at a high of $1.59, and with a bearish turn in the CAKE market, the price has steeply retraced to a low of $1.49. PancakeSwap is currently trading at $1.57, with the daily trading volume up by over 25.52% to $61.08 million. 

Zooming in on the 4-hour chart of PancakeSwap, it displays a bearish trading pattern, with red candles. The price could fall toward the support at around $1.53. If the downside correction intensifies, the death cross might take place. Gradually, the bears would send the price below the $1.49 range. 

On the upside, upon a reversal in the CAKE momentum, the bulls would take charge, and the price might climb to the $1.61 resistance level. Assuming the bullish pressure gains more traction, it pushes for the golden cross to emerge and drives the asset’s price to $1.65 or even higher. 

Bearish Signals Emerge on PancakeSwap’s Technical Charts

When both the MACD and signal lines of PancakeSwap are settled below the zero line, it indicates bearish momentum. It is trading below the longer-term average, and if the lines start moving upward and cross above zero, it hints at a potent shift. 

CAKE chart (Source: TradingView)

Besides, the CMF indicator positioned at 0.21 suggests strong buying pressure in the CAKE market. Notably, the capital is flowing into the asset, and as the value stays in this range, it is likely to support the bullish bias to continue or the accumulation strength. 

PancakeSwap’s daily RSI is staying at 47 implies its neutral sentiment. The asset is neither overbought nor oversold, pointing to consolidation in price action. A move above 50 triggers the bullish strength, while a drop below 45 renews the bearish pressure. 

Furthermore, the Bull Bear Power (BBP) reading of CAKE at 0.036 signals slight bullish dominance. The strength is relatively weak, not strong enough to build a clear uptrend. It may be a fragile recovery, where a potential confirmation is still needed to go higher.

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