Published 3 hours ago
The well-known cryptocurrency exchange FTX crashing caused a sudden bloodbath on satoshi street. As a result, the Bitcoin and Ethereum price are down 10-15%, and the major altcoin is painted in heavy red. Moreover, the Pancakeswap token price hints at breaking its steady uptrend with the loss of the rising support trendline.
Key points:
- The volatile Pancakeswap token price attempts to break its five-month-long support trendine
- The coin holders lose the crucial EMA support of 20, 50, and 100)
- The intraday trading volume in the Litecoin coin is $145.3 Million, indicating a 127% gain.
Source-Tradingview
The PancakeSwap token price has witnessed a steady rally over the past five months. From the 2022 low of $2.5, the bullish rally has doubled the altcoin’s market value as it reaches a high of $5.
Furthermore, the technical chart shows a rising support trendline that has been actively supporting the bull run during the occasional pullback. Thus, the several retests to this rising trendline indicate the trades strictly respect this support.
On the other hand, the buyers struggle to sustain above $5 psychologically resistance. Therefore, the PancakeSwap token price resonating between the support trendline and a stiff horizontal resistance creates a narrow range-bound movement.
The price spread is gradually narrowing within range and will soon reach a point of the no-trading zone. However, with the FTT price crashing, the crypto market faces an extreme sell-off increasing the chance of trendline breakdown.
Thus, a daily candle closing below the rising trendline will release the bearish momentum and trigger a significant correction in CAKE price. Therefore, a potential breakdown could plunge the prices to the immediate support o $4.2.
Technical indicator
Relative strength index: the daily-RSI slope nosedived into the bearish territory, indicating the negative sentiment in the growth among the market sentiment.
EMAs: with the recent downfall, the PancakeSwap token price breached the crucial EMAs(20, 50, and 100), offering an extra edge for market sellers.
- Resistance Levels: $4.5 and $5
- Support Levels: $4.2 and $3.5
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
