PancakeSwap (CAKE) Faces Bearish Pressure With Possible Bounce Toward $2.7 to $2.95 Levels

• PancakeSwap’s price retraced below $2.95 after a failed breakout, signaling bearish market structure.

• Support at $2.55 provided a temporary bounce, but trading volume is declining, indicating weak buying interest.

• Bitcoin’s recent price action near $112k may influence CAKE’s trajectory, with current momentum favoring sellers.

PancakeSwap price analysis reveals bearish momentum after a failed breakout above $2.95. Watch $2.55 support and potential bounce to $2.7. Stay updated with COINOTAG.

What caused PancakeSwap’s price to fail breaking out above $2.95?

PancakeSwap’s failure to sustain a breakout above the $2.95 resistance level was primarily due to increased selling pressure and a bearish market structure shift. The token retraced into a 7-month trading range, reflecting cautious investor sentiment despite brief price bounces near $2.55 support.

How does the current market structure affect CAKE’s short-term price movement?

The daily chart shows a break below the $2.535 swing low, confirming a bearish trend. Indicators like the A/D line and MACD signal heavy selling pressure and momentum favoring sellers. Although $2.55 acts as a notable support level, the declining trading volume suggests limited buying strength, making further downside likely unless CAKE surpasses $2.67.

What are the key resistance and support levels for PancakeSwap?

Support at $2.55 has held recently, providing a bounce opportunity. Resistance levels to watch include $2.7 and $2.8, with stronger barriers at $2.95 and $3.05. The liquidation heatmap indicates liquidity clusters near $2.5 and $2.7, which could influence short-term price moves. However, technical indicators currently do not support a sustained move above $2.6.

How might Bitcoin’s price action impact PancakeSwap’s future trend?

Bitcoin’s price stabilization near $112,000 is a critical factor for CAKE’s outlook. Since PancakeSwap operates on the BNB Smart Chain, its price often correlates with broader market trends. If Bitcoin gains upward momentum, CAKE could see renewed buying interest. Conversely, continued Bitcoin weakness may reinforce bearish pressure on PancakeSwap.

Frequently Asked Questions

Why did PancakeSwap fail to maintain its breakout above $2.95?

Increased selling pressure and bearish momentum caused CAKE to retrace below $2.95, signaling a lack of sustained buying interest and a shift in market structure.

Is PancakeSwap’s price expected to recover soon?

While a bounce to $2.7 is possible due to support levels and liquidity clusters, overall bearish indicators suggest caution until CAKE breaks above key resistance zones.

Key Takeaways

• Failed breakout: PancakeSwap could not sustain a move above $2.95, confirming bearish dominance.
• Support bounce: The $2.55 level provided short-term support, enabling a minor price recovery.
• Market outlook: Declining volume and bearish indicators suggest further downside unless resistance at $2.67 is broken.

Conclusion

PancakeSwap’s price action reflects a bearish market environment after failing to break above $2.95 resistance. While support near $2.55 offers some relief, technical indicators and volume trends favor sellers. Investors should monitor Bitcoin’s price movements and key resistance levels for potential trend shifts. COINOTAG will continue to provide timely updates on CAKE’s trajectory.

PancakeSwap [CAKE] saw a 2.83% price bounce on Sunday, the 3rd of August. However, its short-term trend was bearish after the failed breakout past $2.95 toward the end of July.

This failure saw the price retrace back into the range that is just over 7 months old.

The native token of the decentralized exchange on the BNB Smart Chain did not inspire bullish confidence, even though it was trading at the $2.55 support zone.

Bitcoin [BTC] appeared to have found some buying pressure at the $112k mark, but it was unclear if it could begin a recovery.

Bitcoin’s price movement in the coming days would likely influence CAKE’s trajectory, which at press time appears bearish.

Sellers are in the driving seat

Source: CAKE/USDT on TradingView

CAKE dropped below the swing low it made on the 1-day timeframe on the 24th of July. This move below $2.535 (white) signified a bearish market structure break.

It signaled further losses were likely, although a price drop might or might not be imminent.

The A/D indicator also made a new low compared to the past two months to underline heavy selling pressure in recent days. The MACD made a bearish crossover to capture the shift in momentum in favor of the sellers.

Source: CAKE/USDT on TradingView

A deeper price drop might not be imminent because the $2.55 level marked the 25% level of the 7-month range.

As such, it was a relatively notable support level, and has given PancakeSwap traders a bounce over the past 24 hours.

However, the trading volume has been dwindling over the past 48 hours. The market structure on the H4 chart was also bearish, although a move past $2.67 could usher short-term gains.

Source: CoinGlass

The liquidation heatmap showed a good chance of a price move toward $2.7. The price bounced from the liquidity cluster at $2.5 over the weekend, and was close to the magnetic zones at $2.7 and $2.8.

Further north, the $2.95 and $3.05 levels were the next resistances to watch. At press time, the technical indicators and the price action did not suggest a price move beyond $2.6 could materialize.

If it does, traders need to beware a larger price bounce, even though the 1-day market structure was bearish.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.