Published 7 hours ago
Amid the negative sentiment in the crypto market, the Pancakeswap coin recently reverted from the $4.124 resistance and triggered a minor correction phase. However, this downfall could benefit the coin prices by recuperating the bullish momentum and validating sustainability above higher levels. Moreover, the resulting discount could attract more buyers to the market.
- The ongoing correction in pancakes was coin could discount its value by 10%
- A bullish crossover between the 20-and-100-day EMA encourages the resumption of a bullish recovery
- The intraday trading volume in the Litecoin coin is $42.4 Million, indicating an 11.5% loss.
In the daily time frame chart the pancakeswap coin should have a V-shaped recovery from the $3.14 support. amid the new year growth in the crypto market, the coin price rallied 31.3% and hit a local resistance of $4.124.
In theory, A V-shaped recovery is considered a sign of a strong and resilient market and is usually driven by the optimistic expectations of market participants. However, with the widespread uncertainty caused around the FOMC meeting, the CAKE price reverted from the $4.124 ceiling.
The bearish reversal tumbled the price by 4.6% where it currently trades at $3.94. However, if the selling pressure in the market persists, the coin price will plunge below the immediate support of $3.863.
This potential breakdown could further elongate the correction phase and slump the pancake swap coin 10% down to revisit the $3.575-$3.55 support zone.
Thus, for coin holders, the $3.86 and $3.55 the crucial support that could resume the prevailing recovery but any breakdown below will undermine the bearish thesis.
Moving Average Convergence Divergence: MACD is a trend-following momentum indicator used to identify changes in the strength, direction, momentum, and duration of a trend in an asset’s price. As of now, the narrowing gap between the MADC(blue) and signal(orange) lines of the indicator suggests decreasing momentum and a higher chance for the correction phase.
EMAs: the 20-50-and-100-day EMAs clustered near the $3.86 mark increase the support strength of this level.
Pancakeswap Coin Price Intraday Levels
- Spot rate: $3.96
- Trend: Bearish
- Volatility: Low
- Resistance levels- $4.12 and $4.36
- Support levels- $3.86 and $3.55
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.