Cake had one of the worst starts to the week. It opened at $3.34 on Monday and dipped to a low of $2.80 before recovery. Although it closed at $2.88, it registered losses exceeding 13%.
On Tuesday, the downtrend continued as it sank deeper. It went as low as $2.58 before finding support. Nonetheless, it had a significant change as it was heading for a -8% close but recorded losses of almost 4%.
On Wednesday, we noticed stronger demand concentration at $2.5 as another at the level halted at $2.54. However, Pancakeswap native token closed, losing more than 5%.
A look at the chart shows that the asset is seeing more buying pressure as it registers [its first green after more than five days of consistent price decreases. However, it is not as massive as many expected.
Cake Struggles at $2.55
Over the last 48 hours, one level of concern is the $2.55 support. During the previous intraday session, we noticed this was low of the day. In the 2-hour chart, we noticed several attempts at flipping this mark before it broke.
We are seeing the same wave of trials at the level. At 8 a:m UTC, the token dipped to $2.57. The next two candles show that asset struggled to stay above $2.55 as it retested $2.56 but got an extra boost from a gradual buildup in demand concentration. The next three candles point are indications the bulls defended the said barrier.
On the daily scale, this marked the second time Cake is closing in on the highlighted barrier. This may also indicate that the downtrend is coming to an end. This scenario is more likely as a look at indicators suggests the recovery is overdue.
The Relative Strength Index is currently at 19., indicating that the asset under consideration is oversold. This started on Sunday when it dipped below 30. An oversold asset is set for recovery and may start an uptrend.
The post Pancakeswap Analysis: CAKE Sees First Green Following Downtrends appeared first on Coinfomania.