The Pancakeswap price continues to grind sideways in a narrowing range. When the pattern breaks, a substantial move is likely to follow.
PancakeSwap (CAKE) is last trading at $19.76, higher by +2.40% on the day.
Weekly price performance: +21.54%
Weekly Range: $14.8164 – $21.6060
Market Cap: $3.436 Billion
The Pancakswap price has appreciated for the second consecutive week and more than doubled from its May low of $9.3829. Despite the recent recovery, CAKE is still -60% lower than its April all-time high of $47.6880.
The technical set up could see those numbers change dramatically in the near future.
The daily chart shows us that CAKE is wedged between the support and resistance of a triangle formation. Resistance is seen at $21.3000 and offered by a descending trend line from the 20th of May high at $22.5741.
The 100 DMA at $21.07 further reinforces the upside resistance. If the price breaks above the top end of the pattern, it would target the 50 DMA at $27.1315.
A rising trend line from the 23rd of May low provides support at $17.7650. If CAKE trades below this support, it could open the door for a much steeper decline. This potential target would be the recent low at $9.3829, -46.50% below the current price.
Which comes first is hard to say. For now, the best course of action is to follow the price and prepare for possible opportunities in the very near future.
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