PancakeSwap (CAKE) Fails to Overpower $12.2 Resistance – Price Analysis

According to the technical chart, CAKE still trades under a near-term downtrend. The token tried a bullish reversal after breaching the resistance at $12.6 last week. However, CAKE encountered rejection immediately amid intense selling, forming a bear trap. Therefore, the coin can crash to $10, where sellers and buyers will determine the asset’s fate.
Vital Technical Points
- PancakeSwap price has a massive resistance from the 20-day exponential moving average.
- CAKE’s intraday volume stands at $172.8 million, reflecting a 3.8% loss.
CAKE/USD has been plummeting towards the critical support of $10. The alternative coin has spent nearly two weeks around this support, looking for adequate demand pressure. On December 14, the pair bounced from this support and overpowered the $12.6 hurdle. However, CAKE failed to maintain beyond this mark, confirming a fakeout.
PancakeSwap maintains bearishness on the critical exponential moving averages (20-50-100 and 200). Meanwhile, the 20 exponential moving average represents a massive resistance area for CAKE. The daily RSI indicates a visible bullish divergence on the chart, showing bulls trying to lead the race again.
CAKE/USD 4Hr Chart
PancakeSwap is yet to provide a daily candlestick closing under the $12.6 level. If the token sustains the downtrends, CAKE will drop to retest $10.6 once more. Meanwhile, we cannot ignore the bullish divergence in the RSI. With that, market participants should wait and see price movements at this mark for a potential bullish reversal.
According to the traditional pivot, the immediate resistance for PancakeSwap at $12.3, then $13.7 remains vital. Meanwhile, the crypto had support levels at $11, then $9.5.
Meanwhile, the broad market remains bearish. Bitcoin has dropped under the $46,000 mark as investors avoid riskier assets. The financial market moves under pressure amid Omicron’s fears. Bitcoin’s dip can mean corrections by alts.
Bitcoin should rise above the $46,200 level for a sustainable upward momentum in the short term. That would support the overall market trend. If BTC maintains the downward attitude, alternative coins like CAKE will endure plummets.
For now, PancakeSwap trades at a do-or-die situation after the failure to flip the resistance at $12.2. What are your views on that? You can comment below.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.