The continuous downtrend or correction phase in PancakeSwap (CAKE) had the alternative token plunging towards a vital support level around the $11 mark. The altcoin still tries to maintain beyond this level. Nevertheless, the Relative Strength Index’s positive turn shows buyers getting active once more.
CAKE Price Trends
CAKE token underwent a moderate retracement phase in September. That had the coin plummeting to the support at $17.5. PancakeSwap attempted a bounce from the level several times. However, the amplified selling momentum across the capital markets had CAKE breaching the support, confirming further plunges for the token.
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Overcoming the Closest Resistance at $12.6 Will Support CAKE’s Recovery
CAKE token saw its price dropping to a critical support area neat the $11 level. Keep in mind that the coin touched this support back on 21 July and 21 March, and it initiated impressive rallies for the PancakeSwap token.
With the recent price drop, CAKE seems ready to retest the support level for the 3rd time. Moreover, the Relative Strength Index displays considerable bullish divergence, confirming a possible bullish reversal. However, reversing a dominant trend in the crypto industry has challenges.
For that reason, investors searching for an entry opportunity at current levels need to adhere to risk management strategies. Moreover, investors may have to wait for the alt to conquer the immediate resistance at $12.6 before executing long entries.
PancakeSwap (CAKE) displays a bearish attitude among the critical exponential moving averages (20-50-100- and 200. That supports a massive downtrend. Meanwhile, the daily RSI (35) showed a bullish divergence, confirming increased strength by buyers. However, the Relative Strength Index still wavers within a bearish zone.
According to primary pivot zones of the four-hour chart, CAKE enthusiasts can expect immediate resistance to emerge at $11.6, then $12.6. Meanwhile, vital support levels sit at $10.68, then $9.72.
Though PancakeSwap (CAKE) hovers within downtrends, the concealed divergence by RSI keeps investors hopeful. The token seems ready to shift to an upward trend. However, switching well-established price trends in the crypto space can be challenging. For that reason, CAKE investors should be cautious when interacting with the alt at the current price.
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