CAKE Price Analysis: Bearish Breakout or Bullish Uptrend?
• CAKE posted a bearish rising wedge channel pattern and 9% gains after the FOMC announcement.
• PancakeSwap [CAKE] saw an uptick in total value locked (TVL) in the past few days.
• If Bitcoin fails to reclaim the $23.5K zone, bears could continue to devalue CAKE, but bulls could attempt a break above the wedge and aim at $4.722.
PancakeSwap [CAKE] Price Prediction 2023-24
At press time, CAKE traded at $4.305 while Bitcoin [BTC] was below the crucial $23.5K price level. PancakeSwap [CAKE] posted about 9% gains after the FOMC announcement, however its price action in the same period chalked a bearish pattern which could suggest a possible drop in the next few hours/days.
Bearish Rising Wedge Pattern
CAKE formed a rising wedge pattern – a typical bearish formation which means there is high possibility of bearish breakout or price reversal where bears could break below the wedge and settle at $3.845 in the next few hours/days however such drop must break key support levels like $4.236, 26-period EMA, $4.144, and $3.950 so bears should be cautious of these levels as any bullish influence can cause an upswing invalidating this bearish bias towards aiming at $4.722 mark if bulls gain control over the situation with help from BTC price surge above its current level of 23500$.
Total Value Locked (TVL)
PancakeSwap recorded an uptick in TVL in the past few days according to DefiLlama data on January 31st TVL was approximately 2 billion 45 million dollars while now it has risen to 2 billion 57 million dollars at press time which is likely to boost investors’ confidence for native token and may cause an uptrend rally eventually leading towards bullish breakout above mentioned wedge invalidating bearish bias along with increase revenue recorded by CAKE towards end of January and early February will also help bulls gaining confidence if BTC regains 23500$mark or surges above it then convincing bullish breakout for CAKE is likely to happen soon as well increasing investors’ confidence even more than before..
Overall, CAKE’s current structure suggests that bulls have control over its price action as indicated by RSI and OBV readings however bears should still be aware of key support levels like 4236$, 26-period EMA, 4144$ and 3950$ which if broken will confirm bearish breakout towards 3845$ mark while on other hand a convincing bullish breakout can only happen if BTC regains 23500$ level or surges above it confirming investor’s confidence increase once again leading towards upswing rally for CAKE ultimately aiming at 4722$ target successfully invalidating all previous predictions made during this article/discussion as well!