• Mon. Jun 24th, 2024

PancakeSwap maintains a descending triangle setup. Here is what could happen next

After remaining in a bullish momentum since June, PancakeSwap (CAKE/USD) buyers seem to have hit speed bumps. CAKE faced resistance at $5.0 in late September, a level more than double the price it traded during the June lows. The token now trades at $4.45, and bear pressure is mounting.

There is no clear reason for the continued decline in CAKE. It could be due to profit-taking since the token was on a bullish gear as other cryptocurrencies plunged. The bear market happens amid positive news after the hyped launch of Aptos more than a week ago. 

Accordingly, PancakeSwap is positioning itself to become the largest DEX on Aptos. Through a community vote on October 20, a proposal was passed to deploy the DEX mainnet on Aptos. The latter is an entrant Layer-1 blockchain offering low transaction costs and faster speeds.

In the proposed plan, developers will deploy swaps, pools, farms, and initial farm offerings on Aptos in the fourth quarter. CAKE will also be available on the Aptos blockchain. PancakeSwap has attributed the move to Aptos’s low transaction costs, high speeds, and transaction throughput.

Of course, Aptos has been making headlines since its launch. PancakeSwap sees an opportunity ahead of others. However, CAKE is yet to show any positive change, with the price down 3% in the past week. 

A bearish MA crossover is imminent as CAKE trades lower

Source – TradingView

A technical outlook shows CAKE is trading on a descending triangle. Although yet to break out, momentum is weak, and a further decline is likely. 

Our attention is also drawn to the 20-day and 50-day moving averages. The 20-day MA is, for the first time since July, attempting to break below the 50-day MA. A crossover of the short-term below the longer-term MA should be interpreted as a bear sign for the cryptocurrency.

The relative strength index is below the midpoint but shows CAKE is far away from the oversold level. The reading of 47 suggests there are more sellers for the cryptocurrency.

What next for CAKE?

A bear momentum will be confirmed when CAKE breaks below from the descending triangle. A 20-day MA crossover below the 50-day MA will reinforce a bearish bias. The next level to watch will be $4.1.

Where to buy CAKE

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users.

It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets.

On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.


Buy CAKE with Capital.com today

Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices.

It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform.

Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.


Buy CAKE with Skilling today

The post PancakeSwap maintains a descending triangle setup. Here is what could happen next appeared first on CoinJournal.