- PancakeSwap has gained 41.4% in under three days with high trading volume
- The quick price action boomerang indicated bullish strength in the short-term
PancakeSwap [CAKE] has seen high volatility over the past two weeks. The bearishness around the market saw CAKE make a bearish market structure break when it fell below $1.87.
This fall has quickly recovered, but the daily market structure remained bearish.
The $2.1 resistance zone was overhead. It has been significant over the past eight months, repeatedly serving as support and then resistance. Flipping this level to support would be a good start for PancakeSwap bulls.
CAKE bulls fight back, quickly surge past $1.52
Source: CAKE/USDT on TradingView
CAKE saw a bearish market structure break on the 1st of February when the daily session closed below $1.87.
This break was followed by another 27.28% drop over the next six days that reached a local low of $1.35 before bounding higher.
This bounce has tested the $2 region. Highlighted in red, it was the swing high from where the market structure break originated, making it a bearish order block.
Hence, it was unlikely to be flipped to support on the first try.
However, alongside the swift bounce from $1.35 to $1.94, the CMF also jumped beyond +0.05. It was at +0.08 to indicate significant capital inflows.
The Awesome Oscillator remained below zero on the daily chart, showing momentum was still bearish. This was also aided by the high trading volume over the past 48 hours.
Source: Coinglass
The liquidation map showed that the $1.88 and $2.1 zones had high leverage liquidation levels. These could be targeted in the short-term- a price move to these levels before it quickly reverses its short-term momentum.
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The liquidation map also highlighted the sparsity of short liquidations beyond $2.14. Therefore, a liquidity hunt to the north might not be as explosive as one to the south.
Yet, with high buying pressure, the price of PancakeSwap might not drop too far below $1.88.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
