CAKE Soars by 33% Within 24 Hours With $4 Price in Sight
CAKE, the native token of popular crypto DEX (Decentralized Exchange), PancakeSwap recorded a 33% price surge over the past 24 hours. According to data from Coinmarketcap, this placed CAKE as the best-performing cryptocurrency over the past day.
This extended CAKE’s remarkable 75% pump within a week, rising from $2.15 to $3.80.
Price consolidation points to further gains for buyers
The daily chart for CAKE showed a unique opportunity for short- and long-term traders. CAKE’s price momentum slowed after touching $3.80 with its intraday price action consolidating around the $3.4-$3.5 price zone.
With a key support level lying at this price zone ($3.4-$3.5), short-term traders can look for a retest of the support level on the four-hour time. This could provide profit opportunities at $3.8 to $4.
On the other hand, long-term traders can wait for a bullish candle close on the daily timeframe above the support level. Profit targets in the long term lie at $4.5 to $5. If the bullish momentum continues, the long-term target could be achieved by the second week of January 2024.
Fundamentally, CAKE’s price rise has been supported by the PancakeSwap team executing a token burn on December 26. This removed over 10 million CAKE tokens valued at approximately $34 million from the coin’s supply. This can be viewed as a strategic move to boost CAKE’s investment proposition.
Technically, the on-chart indicators remained bullish on the lower and higher timeframes. The Relative Strength Index (RSI) stood in the overbought zone, signaling massive buy pressure. Similarly, the capital inflows for CAKE remained strong with the Chaikin Money Flow posting a positive reading of +0.19.
Overall, CAKE’s price outlook remained optimistic in the short to medium term with buyers looking to extend the bullish momentum.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.