Why PancakeSwap Might Just Be The Next Big Thing (Or Not… Who Knows?)

by
  • PancakeSwap just showed a little spunk, rallying nearly 22%. What a show-off.
  • It’ll need a whole lot more buying to push its price back up to nearly $3. But hey, miracles happen, right?

So, here we are—PancakeSwap (CAKE) is up 34% in five days. Great! Wonderful! Fantastic! It went from $1.38 to $1.85. Meanwhile, Bitcoin (BTC) was only up 9.3% (yawn), from $76.6k to $83.7k. But who’s counting?

Sure, the CAKE rally looks pretty, but can it actually keep going? That’s the million-dollar question, isn’t it? A technical analysis shows that the bulls might still have some fight left in them. But, spoiler alert: they’ll need stronger demand, and it wouldn’t hurt if Bitcoin goes over $84.3k. Then, maybe the altcoins will follow like lost puppies.

The Struggles, The Triumphs, The Drama: A PancakeSwap Story

The weekly chart (because we’re all about those long-term investments, right?) shows that $1.51 is the magic number for support. In February and March, when everyone thought PancakeSwap was dead in the water, the bulls were there defending this sacred zone like it was the last slice of pizza at a party. It’s encouraging, I guess, but also a little bit sad.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

The OBV (On-Balance Volume for the uninitiated) is up, which means buying volume is creeping higher. Not quite the same as the explosive February bounce, but hey, progress is progress.

Now, if you pull up the daily chart (yep, we’re going there too), you’ll notice that CAKE is stuck in a range formation between $1.37 and $2.94. But it did break through 75% of that range at $1.76. Whoopee! It should hold as support if it retests, but don’t hold your breath.

Meanwhile, CAKE is trading in some “fair value gap” (because everything sounds more sophisticated when you say it like that), so don’t be surprised if it faces a little bit of selling pressure soon. You know, the usual market drama.

The RSI (Relative Strength Index for the cool kids) is just under 50, which suggests that bullish momentum *might* be coming, or maybe not. Who can say? It’s like waiting for a bus that may never come.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

If you’re a swing trader (or just someone with too much free time), consider buying more CAKE between $1.68 and $1.79. Your take-profit levels? Oh, you know, somewhere around $2.16 and $2.94. The range high is where the real party’s at.

Coinalyze data (yes, that’s a thing) shows that Open Interest is climbing, which means derivatives traders are feeling *really* confident. Or maybe they’re just pretending to be. Meanwhile, the spot CVD is up, but it’s already starting to lose some steam. Classic.

In conclusion, the short-term sentiment for CAKE is bullish-ish. Will it hold? Will it fall? Who knows? But if it retests the $1.7 area as support, it might just climb higher. Or it might not. It’s anyone’s guess, really.

Read More

2025-03-17 00:10