PancakeSwap Token (CAKE) Slides Below Key Support, Paints Bearish Picture

PancakeSwap (CAKE) has plunged below its $3 support level, indicating bearish sentiment. Technical indicators like moving averages and price action support this downward trend. A bearish outlook persists, with analysts predicting further price declines toward the $2 demand zone. Additionally, volume has decreased, suggesting waning buying pressure. The token's volume profile, volatility, and weighted sentiment reinforce the negative outlook, while social dominance and active addresses indicate investor pessimism. Amidst this bearishness, some support levels remain at $2.40 and $2, while resistance levels stand at $3 and $3.30.

PancakeSwap Token (CAKE) Witnesses Negative Outlook, Breaching Crucial Support Zone

Market Analysis

The price of PancakeSwap's native token, CAKE, has experienced a significant decline, breaching the critical support level of $3 and entering bearish territory. Technical indicators point to further price corrections, with the token trading below key moving averages and exhibiting lower low swings.

Price Action and Support Levels

The recent breakout of the rounding bottom pattern and subsequent surge to $5 have been erased by negative market sentiment, resulting in a 40% loss of gains. At the time of writing, CAKE hovers around $2.75, exhibiting a 2.11% intraday surge but remaining in the bearish zone.

Analysts anticipate that CAKE may continue to decline and retest the demand zone of $2. The pair of CAKE/BTC currently stands at 0.0000432 BTC, while the market capitalization remains at $4.55 billion.

Volume Profile Analysis

According to data from Santiment, CAKE's price-to-volume profile has undergone a correction, falling below the pivotal $3 mark. The token is also trading below critical moving averages, suggesting bearish momentum. However, the trend is neutral, with buyers attempting to regain momentum and prepare for a rebound. The intraday trading volume has diminished by over 20.25% to $24.70 million.

Price Volatility and Weighted Sentiment

Amidst the modest price rebound, price volatility has plummeted by over 22.20% to 0.089%, indicating a negative trend. Similarly, the weighted sentiment has turned bearish, slipping towards the oversold region around -1.414.

Social Media Insights

Social dominance data from Santiment has witnessed a decline of over 17.09% to 0.439%, reflecting waning investor sentiment. Social volume data also remains negative, hovering in the bearish region around 2.

Holders and Active Addresses

The total number of holders has witnessed consistent growth, surpassing 1.64 million. However, active addresses have remained neutral, hovering around 21.2k.

Technical Indicators

Technical analysis using Fibonacci levels shows that CAKE is trading below the 23.6% zone and has reached its lower Bollinger Band. The RSI curve remains in the oversold region, signaling a negative crossover.

Market Position and Outlook

The total supply of CAKE crypto stands at 1.65 billion, while the volume-to-market cap ratio is 0.00541, ranking it 26th in market capitalization globally.

The PancakeSwap crypto exhibits a bearish outlook, with sellers dominating the market. Traders anticipate further declines, with the token potentially retesting the $2 mark.