As CAKE trades within a lower timeframe range this is what traders can expect

Disclaimer: The following analysis is solely the writer’s opinion and should not necessarily be considered as investment advice.

• PancakeSwap trades within a range during the past 2 weeks
• There was not a lot of demand for the token, so a wave of selling could cause it to plummet sharply.

PancakeSwap [CAKE] The volatility was lower in the past week. At the time of writing, the $3.96 level was a crucial support and has served as resistance. If the price moves to $3.84 and $4.12, then a buy-or-sell opportunity may arise.

Read PancakeSwap’s [CAKE] price prediction 2023-2024

Bitcoin was facing resistance in the $17.3k range, but the crypto market has seen neutral momentum over the past few days. PancakeSwap could see an increase in token prices. This would make it more likely that PancakeSwap is selling than buying.

The VPVR and mid range both indicated that bulls can beat $3.96 at $3.96

Source: TradingView – CAKE/USDT

CAKE has formed a yellow range (yellow), from $3.84 up to $4.12 since 23 Nov. CAKE was at the $3.98 midpoint of this range. The Point of Control (POV) was also shown in the Volume Profile Visible Range tool at $3.96. This level was close to the mid-range value.

So, we can conclude that the bulls had to beat $3.96, especially in the shorter timeframes. You can buy a retest at this level to gain support, with a $4.12 take profit. However, the Accumulation/Distribution (A/D) indicator has been in a steady decline throughout the time CAKE traded in the aforementioned range. To show that there was no strong momentum, the Relative Strength Index(RSI) was also close to neutral 50.

This indicates that there was little demand. On the longer timeframe charts, such as 12-hour, the $3.75-$3.84 zone was important. Traders can use the range extremes to find good R/R trade opportunities until a clear breakout is witnessed.

MVRV makes a moderate climb into positive territory but sentiment wasn’t bullish yet

Source: Santiment

The chart’s weighted sentiment showed that there was only a moderate amount of enthusiasm for CAKE. Social dominance experienced sharp spikes over the last few weeks. However, there was not much correlation in bullish price actions and positive sentiment since Oct.

The 30-day market value to realized value (MVRV), ratio ticked up since 21 November, and recently surpassed 0%. This could mean that short-term owners might try to profit from a rally upward. This idea is in keeping with the range previously mentioned.